[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5830 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 5830
To amend the Internal Revenue Code of 1986 to apply payroll taxes to
remuneration and earnings from self-employment up to the contribution
and benefit base and to remuneration in excess of $250,000.
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IN THE HOUSE OF REPRESENTATIVES
July 14, 2016
Mr. DeFazio introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to apply payroll taxes to
remuneration and earnings from self-employment up to the contribution
and benefit base and to remuneration in excess of $250,000.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``No Loopholes in Social Security
Taxes Act''.
SEC. 2. PAYROLL TAX ON REMUNERATION UP TO CONTRIBUTION AND BENEFIT BASE
AND MORE THAN $250,000.
(a) In General.--Paragraph (1) of section 3121(a) of the Internal
Revenue Code of 1986 is amended by inserting after ``such calendar
year.'' the following: ``The preceding sentence shall apply only to
calendar years for which the contribution and benefit base (as so
determined) is less than $250,000, and, for such calendar years, only
to so much of the remuneration paid to such employee by such employer
with respect to employment as does not exceed $250,000.''.
(b) Conforming Amendment.--Paragraph (1) of section 3121(a) of the
Internal Revenue Code of 1986 is amended by striking ``Act) to'' and
inserting ``Act), or in excess of $250,000, to''.
(c) Effective Date.--The amendments made by this section shall
apply to remuneration paid after December 31, 2016.
SEC. 3. TAX ON NET EARNINGS FROM SELF-EMPLOYMENT UP TO CONTRIBUTION AND
BENEFIT BASE AND MORE THAN $250,000.
(a) In General.--Paragraph (1) of section 1402(b) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(1) in the case of the tax imposed by section 1401(a),
the excess of--
``(A) that part of the net earnings from self-
employment which is in excess of--
``(i) an amount equal to the contribution
and benefit base (as determined under section
230 of the Social Security Act) which is
effective for the calendar year in which such
taxable year begins, minus
``(ii) the amount of the wages paid to such
individual during such taxable years; over
``(B) that part of the net earnings from self-
employment which is in excess of the sum of--
``(i) the excess of--
``(I) the net earning from self-
employment reduced by the excess (if
any) of subparagraph (A)(i) over
subparagraph (A)(ii), over
``(II) $250,000, reduced by such
contribution and benefit base, plus
``(ii) the amount of the wages paid to such
individual during such taxable year in excess
of such contribution and benefit base and not
in excess of $250,000; or''.
(b) Phaseout.--Subsection (b) of section 1402 of the Internal
Revenue Code of 1986 is amended by adding at the end the following:
``Paragraph (1) shall apply only to taxable years beginning in calendar
years for which the contribution and benefit base (as determined under
section 230 of the Social Security Act) is less than $250,000.''.
(c) Effective Date.--The amendments made by this section shall
apply to net earnings from self-employment derived, and remuneration
paid, after December 31, 2016.
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