| 1 | 1 | | II |
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| 2 | 2 | | 118THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 1174 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to increase funding for Social |
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| 6 | 6 | | Security and Medicare. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | APRIL18, 2023 |
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| 9 | 9 | | Mr. W |
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| 10 | 10 | | HITEHOUSEintroduced the following bill; which was read twice and |
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| 11 | 11 | | referred to the Committee on Finance |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To amend the Internal Revenue Code of 1986 to increase |
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| 14 | 14 | | funding for Social Security and Medicare. |
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| 15 | 15 | | Be it enacted by the Senate and House of Representa-1 |
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| 16 | 16 | | tives of the United States of America in Congress assembled, 2 |
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| 17 | 17 | | SECTION 1. SHORT TITLE. 3 |
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| 18 | 18 | | This Act may be cited as the ‘‘Medicare and Social 4 |
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| 19 | 19 | | Security Fair Share Act’’. 5 |
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| 20 | 20 | | SEC. 2. MODIFICATION OF PAYROLL TAXES. 6 |
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| 21 | 21 | | (a) W |
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| 22 | 22 | | AGEBASE FORTAXESFUNDINGSOCIALSECU-7 |
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| 23 | 23 | | RITY.— 8 |
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| 26 | 26 | | •S 1174 IS |
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| 27 | 27 | | (1) IN GENERAL.—Paragraph (1) of section 1 |
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| 28 | 28 | | 3121(a) of the Internal Revenue Code of 1986 is 2 |
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| 29 | 29 | | amended to read as follows: 3 |
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| 30 | 30 | | ‘‘(1) in the case of taxes imposed by sections 4 |
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| 31 | 31 | | 3101(a) and 3111(a), for any calendar year in which 5 |
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| 32 | 32 | | the contribution and benefit base (as determined 6 |
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| 33 | 33 | | under section 230 of the Social Security Act) is less 7 |
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| 34 | 34 | | than $400,000, so much of the remuneration (other 8 |
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| 35 | 35 | | than remuneration referred to in the succeeding 9 |
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| 36 | 36 | | paragraphs of this subsection) with respect to em-10 |
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| 37 | 37 | | ployment that has been paid to an individual by an 11 |
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| 38 | 38 | | employer during the calendar year as exceeds such 12 |
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| 39 | 39 | | contribution and benefit base but does not exceed 13 |
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| 40 | 40 | | $400,000;’’. 14 |
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| 41 | 41 | | (2) C |
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| 42 | 42 | | ONFORMING AMENDMENTS .— 15 |
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| 43 | 43 | | (A) S |
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| 44 | 44 | | UCCESSOR EMPLOYERS .—Section 16 |
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| 45 | 45 | | 3121 of the Internal Revenue Code of 1986 is 17 |
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| 46 | 46 | | amended by adding at the end the following 18 |
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| 47 | 47 | | new subsection: 19 |
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| 48 | 48 | | ‘‘(aa) S |
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| 49 | 49 | | PECIALRULES FORSUCCESSOREMPLOY-20 |
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| 50 | 50 | | ERS.—For purposes of subsection (a)(1), if an employer 21 |
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| 51 | 51 | | (hereinafter referred to as successor employer) during any 22 |
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| 52 | 52 | | calendar year acquires substantially all the property used 23 |
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| 53 | 53 | | in a trade or business of another employer (hereinafter 24 |
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| 54 | 54 | | referred to as a predecessor), or used in a separate unit 25 |
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| 57 | 57 | | •S 1174 IS |
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| 58 | 58 | | of a trade or business of a predecessor, and immediately 1 |
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| 59 | 59 | | after the acquisition employs in his trade or business an 2 |
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| 60 | 60 | | individual who immediately prior to the acquisition was 3 |
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| 61 | 61 | | employed in the trade or business of such predecessor, 4 |
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| 62 | 62 | | then, for the purpose of determining the amount of remu-5 |
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| 63 | 63 | | neration paid by the successor employer under such sub-6 |
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| 64 | 64 | | section, any remuneration (other than remuneration re-7 |
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| 65 | 65 | | ferred to in the paragraphs succeeding paragraph (1) of 8 |
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| 66 | 66 | | subsection (a)) with respect to employment paid (or con-9 |
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| 67 | 67 | | sidered under this subsection as having been paid) to such 10 |
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| 68 | 68 | | individual by such predecessor during such calendar year 11 |
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| 69 | 69 | | and prior to such acquisition shall be considered as having 12 |
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| 70 | 70 | | been paid by such successor employer.’’. 13 |
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| 71 | 71 | | (B) A |
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| 72 | 72 | | PPLICATION TO RAILROAD RETIRE -14 |
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| 73 | 73 | | MENT TAXES .—Clause (i) of section 15 |
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| 74 | 74 | | 3231(e)(2)(A) of such Code is amended to read 16 |
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| 75 | 75 | | as follows: 17 |
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| 76 | 76 | | ‘‘(i) I |
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| 77 | 77 | | N GENERAL.—For any calendar 18 |
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| 78 | 78 | | year in which the applicable base is less 19 |
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| 79 | 79 | | than $400,000, the term ‘compensation’ 20 |
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| 80 | 80 | | does not include so much of the remunera-21 |
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| 81 | 81 | | tion paid during any calendar year to an 22 |
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| 82 | 82 | | individual by an employer for services ren-23 |
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| 83 | 83 | | dered as an employee to such employer as 24 |
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| 86 | 86 | | •S 1174 IS |
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| 87 | 87 | | exceeds the applicable base but does not 1 |
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| 88 | 88 | | exceed $400,000.’’. 2 |
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| 89 | 89 | | (b) F |
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| 90 | 90 | | URTHERADDITIONALHOSPITALINSURANCE 3 |
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| 91 | 91 | | T |
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| 92 | 92 | | AX ONVERYHIGHINCOMETAXPAYERS.— 4 |
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| 93 | 93 | | (1) I |
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| 94 | 94 | | N GENERAL.—Section 3101(b) of the In-5 |
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| 95 | 95 | | ternal Revenue Code of 1986 is amended by adding 6 |
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| 96 | 96 | | at the end the following new paragraph: 7 |
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| 97 | 97 | | ‘‘(3) F |
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| 98 | 98 | | URTHER ADDITIONAL TAX .—In addition 8 |
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| 99 | 99 | | to the tax imposed by paragraphs (1) and (2) and 9 |
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| 100 | 100 | | the preceding subsection, there is hereby imposed on 10 |
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| 101 | 101 | | every taxpayer (other than a corporation, estate, or 11 |
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| 102 | 102 | | trust) a tax equal to 1.2 percent of wages which are 12 |
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| 103 | 103 | | received with respect to employment (as defined in 13 |
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| 104 | 104 | | section 3121(b)) during the taxable year which are 14 |
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| 105 | 105 | | in excess of— 15 |
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| 106 | 106 | | ‘‘(A) in the case of a joint return, 16 |
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| 107 | 107 | | $500,000, 17 |
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| 108 | 108 | | ‘‘(B) in the case of a married taxpayer (as 18 |
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| 109 | 109 | | defined in section 7703) filing a separate re-19 |
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| 110 | 110 | | turn, |
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| 111 | 111 | | 1 |
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| 112 | 112 | | ∕2of the dollar amount determined under 20 |
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| 113 | 113 | | subparagraph (A), and 21 |
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| 114 | 114 | | ‘‘(C) in any other case, $400,000.’’. 22 |
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| 115 | 115 | | (2) C |
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| 116 | 116 | | OLLECTION OF TAX .—Section 3102 of 23 |
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| 117 | 117 | | such Code is amended by adding at the end the fol-24 |
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| 118 | 118 | | lowing new subsection: 25 |
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| 121 | 121 | | •S 1174 IS |
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| 122 | 122 | | ‘‘(g) SPECIALRULES FORFURTHERADDITIONAL 1 |
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| 123 | 123 | | T |
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| 124 | 124 | | AX.— 2 |
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| 125 | 125 | | ‘‘(1) I |
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| 126 | 126 | | N GENERAL.—In the case of any tax im-3 |
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| 127 | 127 | | posed by section 3101(b)(3), subsection (a) shall 4 |
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| 128 | 128 | | only apply to the extent to which the taxpayer re-5 |
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| 129 | 129 | | ceives wages from the employer in excess of 6 |
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| 130 | 130 | | $400,000, and the employer may disregard the 7 |
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| 131 | 131 | | amount of wages received by such taxpayer’s spouse. 8 |
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| 132 | 132 | | ‘‘(2) C |
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| 133 | 133 | | OLLECTION OF AMOUNTS NOT WITH -9 |
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| 134 | 134 | | HELD.—To the extent that the amount of any tax 10 |
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| 135 | 135 | | imposed by section 3101(b)(3) is not collected by the 11 |
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| 136 | 136 | | employer, such tax shall be paid by the employee. 12 |
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| 137 | 137 | | ‘‘(3) T |
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| 138 | 138 | | AX PAID BY RECIPIENT.—If an employer, 13 |
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| 139 | 139 | | in violation of this chapter, fails to deduct and with-14 |
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| 140 | 140 | | hold the tax imposed by section 3101(b)(3) and 15 |
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| 141 | 141 | | thereafter the tax is paid by the employee, the tax 16 |
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| 142 | 142 | | so required to be deducted and withheld shall not be 17 |
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| 143 | 143 | | collected from the employer, but this paragraph shall 18 |
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| 144 | 144 | | in no case relieve the employer from liability for any 19 |
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| 145 | 145 | | penalties or additions to tax otherwise applicable in 20 |
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| 146 | 146 | | respect of such failure to deduct and withhold.’’. 21 |
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| 147 | 147 | | (c) E |
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| 148 | 148 | | FFECTIVEDATE.—The amendments made by 22 |
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| 149 | 149 | | this section shall apply to remuneration paid, and taxable 23 |
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| 150 | 150 | | years beginning, on or after January 1 of the first cal-24 |
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| 153 | 153 | | •S 1174 IS |
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| 154 | 154 | | endar year that begins after the date of enactment of this 1 |
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| 155 | 155 | | Act. 2 |
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| 156 | 156 | | SEC. 3. MODIFICATION OF TAXES ON SELF-EMPLOYMENT 3 |
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| 157 | 157 | | INCOME. 4 |
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| 158 | 158 | | (a) T |
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| 159 | 159 | | AX ONNETEARNINGSFROMSELF-EMPLOY-5 |
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| 160 | 160 | | MENT UP TO CONTRIBUTION AND BENEFITBASE AND 6 |
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| 161 | 161 | | M |
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| 162 | 162 | | ORETHAN$400,000.—Paragraph (1) of section 7 |
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| 163 | 163 | | 1402(b) of the Internal Revenue Code of 1986 is amended 8 |
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| 164 | 164 | | to read as follows: 9 |
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| 165 | 165 | | ‘‘(1) in the case of the tax imposed by section 10 |
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| 166 | 166 | | 1401(a) for any taxable year beginning in a calendar 11 |
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| 167 | 167 | | year in which the contribution and benefit base (as 12 |
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| 168 | 168 | | determined under section 230 of the Social Security 13 |
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| 169 | 169 | | Act) is less than $400,000, the excess (if any) of— 14 |
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| 170 | 170 | | ‘‘(A) so much of the net earnings from 15 |
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| 171 | 171 | | self-employment which is in excess of— 16 |
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| 172 | 172 | | ‘‘(i) an amount equal to the contribu-17 |
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| 173 | 173 | | tion and benefit base (as determined under 18 |
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| 174 | 174 | | section 230 of the Social Security Act) 19 |
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| 175 | 175 | | which is effective for the calendar year in 20 |
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| 176 | 176 | | which such taxable year begins, reduced 21 |
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| 177 | 177 | | (but not below zero) by 22 |
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| 178 | 178 | | ‘‘(ii) the amount of the wages paid to 23 |
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| 179 | 179 | | such individual during such taxable year, 24 |
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| 180 | 180 | | over 25 |
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| 183 | 183 | | •S 1174 IS |
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| 184 | 184 | | ‘‘(B) the sum of— 1 |
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| 185 | 185 | | ‘‘(i) the excess (if any) of— 2 |
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| 186 | 186 | | ‘‘(I) the net earnings from self- 3 |
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| 187 | 187 | | employment reduced by the excess (if 4 |
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| 188 | 188 | | any) of subparagraph (A)(i) over sub-5 |
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| 189 | 189 | | paragraph (A)(ii), over 6 |
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| 190 | 190 | | ‘‘(II) $400,000, reduced by such 7 |
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| 191 | 191 | | contribution and benefit base, plus 8 |
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| 192 | 192 | | ‘‘(ii) the amount of the wages paid to 9 |
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| 193 | 193 | | such individual during such taxable year in 10 |
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| 194 | 194 | | excess of such contribution and benefit 11 |
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| 195 | 195 | | base and not in excess of $400,000; or’’. 12 |
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| 196 | 196 | | (b) F |
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| 197 | 197 | | URTHERADDITIONALHOSPITALINSURANCE 13 |
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| 198 | 198 | | T |
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| 199 | 199 | | AX ONVERYHIGHINCOMETAXPAYERS.— 14 |
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| 200 | 200 | | (1) I |
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| 201 | 201 | | N GENERAL.—Section 1401(b) of the In-15 |
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| 202 | 202 | | ternal Revenue Code of 1986 is amended by adding 16 |
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| 203 | 203 | | at the end the following new paragraph: 17 |
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| 204 | 204 | | ‘‘(3) F |
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| 205 | 205 | | URTHER ADDITIONAL TAX .— 18 |
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| 206 | 206 | | ‘‘(A) I |
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| 207 | 207 | | N GENERAL.—In addition to the tax 19 |
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| 208 | 208 | | imposed by paragraphs (1) and (2) and the pre-20 |
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| 209 | 209 | | ceding subsection, there is hereby imposed on 21 |
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| 210 | 210 | | every taxpayer (other than a corporation, es-22 |
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| 211 | 211 | | tate, or trust) for each taxable year a tax equal 23 |
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| 212 | 212 | | to 1.2 percent of the self-employment income 24 |
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| 213 | 213 | | for such taxable year which is in excess of— 25 |
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| 216 | 216 | | •S 1174 IS |
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| 217 | 217 | | ‘‘(i) in the case of a joint return, 1 |
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| 218 | 218 | | $500,000, 2 |
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| 219 | 219 | | ‘‘(ii) in the case of a married taxpayer 3 |
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| 220 | 220 | | (as defined in section 7703) filing a sepa-4 |
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| 221 | 221 | | rate return, |
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| 222 | 222 | | 1 |
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| 223 | 223 | | ∕2of the dollar amount deter-5 |
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| 224 | 224 | | mined under subparagraph (A), and 6 |
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| 225 | 225 | | ‘‘(iii) in any other case, $400,000. 7 |
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| 226 | 226 | | ‘‘(B) C |
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| 227 | 227 | | OORDINATION WITH FICA .—The 8 |
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| 228 | 228 | | amounts under clause (i), (ii), or (iii) (which-9 |
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| 229 | 229 | | ever is applicable) of subparagraph (A) shall be 10 |
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| 230 | 230 | | reduced (but not below zero) by the amount of 11 |
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| 231 | 231 | | wages taken into account in determining the 12 |
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| 232 | 232 | | tax imposed under section 3101(b)(3) with re-13 |
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| 233 | 233 | | spect to the taxpayer.’’. 14 |
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| 234 | 234 | | (2) N |
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| 235 | 235 | | O DEDUCTION FOR FURTHER ADDITIONAL 15 |
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| 236 | 236 | | TAX.— 16 |
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| 237 | 237 | | (A) I |
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| 238 | 238 | | N GENERAL.—Section 164(f) of such 17 |
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| 239 | 239 | | Code is amended by striking ‘‘section 18 |
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| 240 | 240 | | 1401(b)(2)’’ and inserting ‘‘paragraphs (2) and 19 |
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| 241 | 241 | | (3) of section 1401(b)’’. 20 |
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| 242 | 242 | | (B) D |
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| 243 | 243 | | EDUCTION FOR NET EARNINGS FROM 21 |
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| 244 | 244 | | SELF-EMPLOYMENT.—Section 1402(a)(12)(B) 22 |
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| 245 | 245 | | of such Code is amended by striking ‘‘the rate 23 |
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| 246 | 246 | | imposed under paragraph (2) of section 24 |
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| 247 | 247 | | 1401(b)’’ and inserting ‘‘the rates imposed 25 |
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| 250 | 250 | | •S 1174 IS |
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| 251 | 251 | | under paragraphs (2) and (3) of section 1 |
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| 252 | 252 | | 1401(b)’’. 2 |
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| 253 | 253 | | (3) T |
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| 254 | 254 | | ECHNICAL AMENDMENT .—Section 3 |
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| 255 | 255 | | 1401(b)(2)(B) of such Code is amended by striking 4 |
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| 256 | 256 | | ‘‘section 3121(b)(2)’’ and inserting ‘‘section 5 |
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| 257 | 257 | | 3101(b)(2)’’. 6 |
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| 258 | 258 | | (c) E |
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| 259 | 259 | | FFECTIVEDATE.—The amendments made by 7 |
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| 260 | 260 | | this section shall apply to net earnings from self-employ-8 |
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| 261 | 261 | | ment derived, and taxable years beginning, on or after 9 |
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| 262 | 262 | | January 1 of the first calendar year that begins after the 10 |
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| 263 | 263 | | date of enactment of this Act. 11 |
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| 264 | 264 | | SEC. 4. TAXES ON UNEARNED INCOME. 12 |
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| 265 | 265 | | (a) M |
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| 266 | 266 | | ODIFICATIONS TOTAX ONNETINVESTMENT 13 |
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| 267 | 267 | | I |
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| 268 | 268 | | NCOME.— 14 |
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| 269 | 269 | | (1) I |
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| 270 | 270 | | N GENERAL.—Section 1411 of the Internal 15 |
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| 271 | 271 | | Revenue Code of 1986 is amended by adding at the 16 |
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| 272 | 272 | | end the following new subsection: 17 |
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| 273 | 273 | | ‘‘(f) A |
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| 274 | 274 | | DDITIONALAMOUNT FORCERTAINHIGHIN-18 |
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| 275 | 275 | | COMEINDIVIDUALS.— 19 |
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| 276 | 276 | | ‘‘(1) I |
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| 277 | 277 | | NCLUSION OF SPECIFIED NET INCOME .— 20 |
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| 278 | 278 | | ‘‘(A) I |
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| 279 | 279 | | N GENERAL.—In the case of any in-21 |
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| 280 | 280 | | dividual whose modified adjusted gross income 22 |
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| 281 | 281 | | for the taxable year exceeds the high income 23 |
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| 282 | 282 | | threshold amount, subsection (a)(1) shall be ap-24 |
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| 283 | 283 | | plied by substituting ‘the greater of specified 25 |
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| 286 | 286 | | •S 1174 IS |
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| 287 | 287 | | net income or net investment income’ for ‘net 1 |
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| 288 | 288 | | investment income’ in subparagraph (A) there-2 |
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| 289 | 289 | | of. 3 |
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| 290 | 290 | | ‘‘(B) P |
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| 291 | 291 | | HASE-IN OF INCREASE.—The in-4 |
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| 292 | 292 | | crease in the tax imposed under subsection 5 |
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| 293 | 293 | | (a)(1) by reason of the application of subpara-6 |
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| 294 | 294 | | graph (A) (determined before application of 7 |
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| 295 | 295 | | paragraph (2)) shall not exceed the amount 8 |
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| 296 | 296 | | which bears the same ratio to the amount of 9 |
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| 297 | 297 | | such increase (determined without regard to 10 |
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| 298 | 298 | | this paragraph) as— 11 |
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| 299 | 299 | | ‘‘(i) the excess described in subpara-12 |
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| 300 | 300 | | graph (A), bears to 13 |
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| 301 | 301 | | ‘‘(ii) $100,000 ( |
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| 302 | 302 | | 1 |
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| 303 | 303 | | ∕2such amount in the 14 |
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| 304 | 304 | | case of a married taxpayer (as defined in 15 |
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| 305 | 305 | | section 7703) filing a separate return). 16 |
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| 306 | 306 | | ‘‘(2) A |
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| 307 | 307 | | DDITIONAL RATE BRACKET .—In the case 17 |
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| 308 | 308 | | of any individual whose modified adjusted gross in-18 |
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| 309 | 309 | | come for the taxable year exceeds the high income 19 |
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| 310 | 310 | | threshold amount, the amount of tax imposed under 20 |
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| 311 | 311 | | subsection (a)(1) shall be increased by an amount 21 |
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| 312 | 312 | | equal to 13.6 percent of the lesser of— 22 |
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| 313 | 313 | | ‘‘(A) the greater of the specified net in-23 |
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| 314 | 314 | | come or net investment income for the taxable 24 |
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| 315 | 315 | | year, or 25 |
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| 318 | 318 | | •S 1174 IS |
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| 319 | 319 | | ‘‘(B) the excess (if any) of— 1 |
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| 320 | 320 | | ‘‘(i) the modified adjusted gross in-2 |
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| 321 | 321 | | come for such taxable year, over 3 |
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| 322 | 322 | | ‘‘(ii) the high income threshold 4 |
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| 323 | 323 | | amount. 5 |
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| 324 | 324 | | ‘‘(3) D |
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| 325 | 325 | | EFINITIONS.— 6 |
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| 326 | 326 | | ‘‘(A) H |
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| 327 | 327 | | IGH INCOME THRESHOLD 7 |
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| 328 | 328 | | AMOUNT.—For purposes of this subsection, the 8 |
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| 329 | 329 | | term ‘high income threshold amount’ means— 9 |
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| 330 | 330 | | ‘‘(i) except as provided in clause (ii) 10 |
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| 331 | 331 | | or (iii), $400,000, 11 |
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| 332 | 332 | | ‘‘(ii) in the case of a taxpayer making 12 |
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| 333 | 333 | | a joint return under section 6013 or a sur-13 |
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| 334 | 334 | | viving spouse (as defined in section 2(a)), 14 |
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| 335 | 335 | | $500,000, and 15 |
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| 336 | 336 | | ‘‘(iii) in the case of a married tax-16 |
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| 337 | 337 | | payer (as defined in section 7703) filing a 17 |
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| 338 | 338 | | separate return, |
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| 339 | 339 | | 1 |
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| 340 | 340 | | ∕2of the dollar amount 18 |
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| 341 | 341 | | determined under clause (ii). 19 |
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| 342 | 342 | | ‘‘(B) S |
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| 343 | 343 | | PECIFIED NET INCOME .—For pur-20 |
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| 344 | 344 | | poses of this section, the term ‘specified net in-21 |
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| 345 | 345 | | come’ means net investment income deter-22 |
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| 346 | 346 | | mined— 23 |
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| 347 | 347 | | ‘‘(i) without regard to the phrase 24 |
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| 348 | 348 | | ‘other than such income which is derived in 25 |
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| 351 | 351 | | •S 1174 IS |
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| 352 | 352 | | the ordinary course of a trade or business 1 |
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| 353 | 353 | | not described in paragraph (2),’ in sub-2 |
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| 354 | 354 | | section (c)(1)(A)(i), 3 |
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| 355 | 355 | | ‘‘(ii) without regard to the phrase ‘de-4 |
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| 356 | 356 | | scribed in paragraph (2)’ in subsection 5 |
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| 357 | 357 | | (c)(1)(A)(ii), 6 |
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| 358 | 358 | | ‘‘(iii) without regard to the phrase 7 |
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| 359 | 359 | | ‘other than property held in a trade or 8 |
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| 360 | 360 | | business not described in paragraph (2)’ in 9 |
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| 361 | 361 | | subsection (c)(1)(A)(iii), 10 |
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| 362 | 362 | | ‘‘(iv) without regard to paragraphs 11 |
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| 363 | 363 | | (2), (3), and (4) of subsection (c), and 12 |
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| 364 | 364 | | ‘‘(v) by treating paragraphs (5) and 13 |
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| 365 | 365 | | (6) of section 469(c) (determined without 14 |
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| 366 | 366 | | regard to the phrase ‘To the extent pro-15 |
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| 367 | 367 | | vided in regulations,’ in such paragraph 16 |
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| 368 | 368 | | (6)) as applying for purposes of subsection 17 |
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| 369 | 369 | | (c) of this section.’’. 18 |
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| 370 | 370 | | (b) A |
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| 371 | 371 | | PPLICATION TOTRUSTS ANDESTATES.—Sec-19 |
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| 372 | 372 | | tion 1411(a)(2) of the Internal Revenue Code of 1986 is 20 |
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| 373 | 373 | | amended— 21 |
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| 374 | 374 | | (1) by striking ‘‘3.8 percent’’ and inserting 22 |
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| 375 | 375 | | ‘‘17.4 percent’’, and 23 |
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| 376 | 376 | | (2) in subparagraph (A) thereof, by striking 24 |
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| 377 | 377 | | ‘‘undistributed net investment income’’ and inserting 25 |
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| 379 | 379 | | pbinns on DSKJLVW7X2PROD with $$_JOB 13 |
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| 380 | 380 | | •S 1174 IS |
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| 381 | 381 | | ‘‘the greater of undistributed specified net income or 1 |
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| 382 | 382 | | undistributed net investment income’’. 2 |
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| 383 | 383 | | (c) C |
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| 384 | 384 | | LARIFICATIONSWITHRESPECT TO DETER-3 |
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| 385 | 385 | | MINATION OFNETINVESTMENTINCOME.— 4 |
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| 386 | 386 | | (1) C |
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| 387 | 387 | | ERTAIN EXCEPTIONS.—Section 1411(c)(6) 5 |
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| 388 | 388 | | of the Internal Revenue Code of 1986 is amended to 6 |
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| 389 | 389 | | read as follows: 7 |
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| 390 | 390 | | ‘‘(6) S |
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| 391 | 391 | | PECIAL RULES.—Net investment income 8 |
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| 392 | 392 | | shall not include— 9 |
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| 393 | 393 | | ‘‘(A) any item taken into account in deter-10 |
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| 394 | 394 | | mining self-employment income for such taxable 11 |
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| 395 | 395 | | year on which a tax is imposed by section 12 |
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| 396 | 396 | | 1401(b), 13 |
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| 397 | 397 | | ‘‘(B) wages received with respect to em-14 |
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| 398 | 398 | | ployment on which a tax is imposed under sec-15 |
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| 399 | 399 | | tion 3101(b) (determined without regard to sec-16 |
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| 400 | 400 | | tion 3101(c)) or 3201(a) (including amounts 17 |
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| 401 | 401 | | taken into account under section 3121(v)(2)), 18 |
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| 402 | 402 | | and 19 |
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| 403 | 403 | | ‘‘(C) wages received from the performance 20 |
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| 404 | 404 | | of services earned outside the United States for 21 |
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| 405 | 405 | | a foreign employer.’’. 22 |
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| 406 | 406 | | (2) N |
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| 407 | 407 | | ET OPERATING LOSSES NOT TAKEN INTO 23 |
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| 408 | 408 | | ACCOUNT.—Section 1411(c)(1)(B) of such Code is 24 |
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| 411 | 411 | | •S 1174 IS |
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| 412 | 412 | | amended by inserting ‘‘(other than section 172)’’ 1 |
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| 413 | 413 | | after ‘‘this subtitle’’. 2 |
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| 414 | 414 | | (3) I |
|---|
| 415 | 415 | | NCLUSION OF CERTAIN FOREIGN IN -3 |
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| 416 | 416 | | COME.— 4 |
|---|
| 417 | 417 | | (A) I |
|---|
| 418 | 418 | | N GENERAL.—Section 1411(c)(1)(A) 5 |
|---|
| 419 | 419 | | of such Code is amended by striking ‘‘and’’ at 6 |
|---|
| 420 | 420 | | the end of clause (ii), by striking ‘‘over’’ at the 7 |
|---|
| 421 | 421 | | end of clause (iii) and inserting ‘‘and’’, and by 8 |
|---|
| 422 | 422 | | adding at the end the following new clause: 9 |
|---|
| 423 | 423 | | ‘‘(iv) any amount includible in gross 10 |
|---|
| 424 | 424 | | income under section 951, 951A, 1293, or 11 |
|---|
| 425 | 425 | | 1296, over’’. 12 |
|---|
| 426 | 426 | | (B) P |
|---|
| 427 | 427 | | ROPER TREATMENT OF CERTAIN 13 |
|---|
| 428 | 428 | | PREVIOUSLY TAXED EARNINGS AND PROFITS .— 14 |
|---|
| 429 | 429 | | Section 1411(c) of such Code is amended by 15 |
|---|
| 430 | 430 | | adding at the end the following new paragraph: 16 |
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| 431 | 431 | | ‘‘(7) C |
|---|
| 432 | 432 | | ERTAIN EARNINGS AND PROFITS OF FOR -17 |
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| 433 | 433 | | EIGN CORPORATIONS.— 18 |
|---|
| 434 | 434 | | ‘‘(A) I |
|---|
| 435 | 435 | | N GENERAL.—Except as otherwise 19 |
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| 436 | 436 | | provided by the Secretary, a distribution of 20 |
|---|
| 437 | 437 | | earnings and profits that is not treated as a 21 |
|---|
| 438 | 438 | | dividend for purposes of chapter 1 by reason of 22 |
|---|
| 439 | 439 | | section 959(d) or section 1293(c) shall not be 23 |
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| 440 | 440 | | treated as a dividend for purposes of this sec-24 |
|---|
| 441 | 441 | | tion. 25 |
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| 444 | 444 | | •S 1174 IS |
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| 445 | 445 | | ‘‘(B) REGULATIONS AND OTHER GUID -1 |
|---|
| 446 | 446 | | ANCE.—The Secretary shall issue regulations or 2 |
|---|
| 447 | 447 | | other guidance providing for the treatment of 3 |
|---|
| 448 | 448 | | distributions by a foreign corporation after De-4 |
|---|
| 449 | 449 | | cember 31, 2023, of earnings and profits of 5 |
|---|
| 450 | 450 | | such foreign corporation which accrued before 6 |
|---|
| 451 | 451 | | such date, but which have not been previously 7 |
|---|
| 452 | 452 | | subject to tax under this section.’’. 8 |
|---|
| 453 | 453 | | (d) T |
|---|
| 454 | 454 | | RANSFERS OF REVENUES TO OLD-AGE AND 9 |
|---|
| 455 | 455 | | S |
|---|
| 456 | 456 | | URVIVORS, DISABILITYINSURANCE, ANDFEDERALHOS-10 |
|---|
| 457 | 457 | | PITALINSURANCETRUSTFUNDS.— 11 |
|---|
| 458 | 458 | | (1) F |
|---|
| 459 | 459 | | EDERAL OLD-AGE AND SURVIVORS TRUST 12 |
|---|
| 460 | 460 | | FUND.— 13 |
|---|
| 461 | 461 | | (A) I |
|---|
| 462 | 462 | | N GENERAL.—Section 201(a) of the 14 |
|---|
| 463 | 463 | | Social Security Act (42 U.S.C. 401(a)) is 15 |
|---|
| 464 | 464 | | amended— 16 |
|---|
| 465 | 465 | | (i) by striking ‘‘100 per centum of’’, 17 |
|---|
| 466 | 466 | | (ii) by inserting ‘‘100 percent of’’ be-18 |
|---|
| 467 | 467 | | fore ‘‘the taxes’’ each place it appears in 19 |
|---|
| 468 | 468 | | paragraphs (1), (2), (3), and (4), and 20 |
|---|
| 469 | 469 | | (iii) by striking ‘‘and’’ at the end of 21 |
|---|
| 470 | 470 | | paragraph (3), by striking the period at 22 |
|---|
| 471 | 471 | | the end of paragraph (4) and inserting ‘‘; 23 |
|---|
| 472 | 472 | | and’’, and by inserting after paragraph (4) 24 |
|---|
| 473 | 473 | | the following new paragraph: 25 |
|---|
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| 476 | 476 | | •S 1174 IS |
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| 477 | 477 | | ‘‘(5) 71.3 percent of the taxes imposed by sec-1 |
|---|
| 478 | 478 | | tion 1411 of the Internal Revenue Code of 1986 for 2 |
|---|
| 479 | 479 | | any taxable year beginning after December 31, 3 |
|---|
| 480 | 480 | | 2023, as determined by the Secretary of the Treas-4 |
|---|
| 481 | 481 | | ury or the Secretary’s delegate based on tax returns 5 |
|---|
| 482 | 482 | | under subtitle F of such Code, less the amounts 6 |
|---|
| 483 | 483 | | specified in paragraph (3) of subsection (b).’’. 7 |
|---|
| 484 | 484 | | (B) C |
|---|
| 485 | 485 | | ONFORMING AMENDMENT .—The 8 |
|---|
| 486 | 486 | | fourth sentence of section 201(a) of such Act 9 |
|---|
| 487 | 487 | | (42 U.S.C. 401(a)) is amended by striking 10 |
|---|
| 488 | 488 | | ‘‘clauses (3) and (4)’’ each place it appears and 11 |
|---|
| 489 | 489 | | inserting ‘‘paragraphs (3), (4), and (5)’’. 12 |
|---|
| 490 | 490 | | (2) F |
|---|
| 491 | 491 | | EDERAL DISABILITY INSURANCE TRUST 13 |
|---|
| 492 | 492 | | FUND.—Section 201(b) of the Social Security Act 14 |
|---|
| 493 | 493 | | (42 U.S.C. 401(b)) is amended— 15 |
|---|
| 494 | 494 | | (A) by striking ‘‘100 per centum of’’, and 16 |
|---|
| 495 | 495 | | (B) by striking ‘‘and’’ at the end of para-17 |
|---|
| 496 | 496 | | graph (1), by striking the period at the end of 18 |
|---|
| 497 | 497 | | paragraph (2) and inserting ‘‘; and’’, and by in-19 |
|---|
| 498 | 498 | | serting after paragraph (2) the following new 20 |
|---|
| 499 | 499 | | paragraph: 21 |
|---|
| 500 | 500 | | ‘‘(3) 10.3 percent of the taxes imposed by sec-22 |
|---|
| 501 | 501 | | tion 1411 of the Internal Revenue Code of 1986 for 23 |
|---|
| 502 | 502 | | any taxable year beginning after December 31, 24 |
|---|
| 503 | 503 | | 2023, as determined by the Secretary of the Treas-25 |
|---|
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| 506 | 506 | | •S 1174 IS |
|---|
| 507 | 507 | | ury or the Secretary’s delegate based on tax returns 1 |
|---|
| 508 | 508 | | under subtitle F of such Code.’’. 2 |
|---|
| 509 | 509 | | (3) F |
|---|
| 510 | 510 | | EDERAL HOSPITAL INSURANCE TRUST 3 |
|---|
| 511 | 511 | | FUND.—Section 1817(a) of the Social Security Act 4 |
|---|
| 512 | 512 | | (42 U.S.C. 1395i(a)) is amended— 5 |
|---|
| 513 | 513 | | (A) by striking ‘‘100 per centum of’’, 6 |
|---|
| 514 | 514 | | (B) by inserting ‘‘100 percent of’’ before 7 |
|---|
| 515 | 515 | | ‘‘the taxes’’ each place it appears in paragraphs 8 |
|---|
| 516 | 516 | | (1) and (2), and 9 |
|---|
| 517 | 517 | | (C) by striking ‘‘and’’ at the end of para-10 |
|---|
| 518 | 518 | | graph (1), by striking the period at the end of 11 |
|---|
| 519 | 519 | | paragraph (2) and inserting ‘‘; and’’, and by in-12 |
|---|
| 520 | 520 | | serting after paragraph (2) the following new 13 |
|---|
| 521 | 521 | | paragraph: 14 |
|---|
| 522 | 522 | | ‘‘(3) 28.7 percent of the taxes imposed by sec-15 |
|---|
| 523 | 523 | | tion 1411 of the Internal Revenue Code of 1986 for 16 |
|---|
| 524 | 524 | | any taxable year beginning after December 31, 17 |
|---|
| 525 | 525 | | 2023, as determined by the Secretary of the Treas-18 |
|---|
| 526 | 526 | | ury or the Secretary’s delegate based on tax returns 19 |
|---|
| 527 | 527 | | under subtitle F of such Code.’’. 20 |
|---|
| 528 | 528 | | (e) E |
|---|
| 529 | 529 | | FFECTIVEDATE.—The amendments made by 21 |
|---|
| 530 | 530 | | this section shall apply to taxable years beginning after 22 |
|---|
| 531 | 531 | | December 31, 2023. 23 |
|---|
| 532 | 532 | | Æ |
|---|
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