[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2326 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2326
To modify the optional method of computing net earnings from self-
employment.
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IN THE SENATE OF THE UNITED STATES
April 21, 2004
Mr. Feingold introduced the following bill; which was read twice and
referred to the Committee on Finance
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A BILL
To modify the optional method of computing net earnings from self-
employment.
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 ``Farmer Tax Fairness Act of 2004''.
SEC. 2. MODIFICATION TO OPTIONAL METHOD OF COMPUTING NET EARNINGS FROM
SELF-EMPLOYMENT.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) In general.--The matter following paragraph (15) of
section 1402(a) of the Internal Revenue Code of 1986 is
amended--
(A) by striking ``$2,400'' each place it appears
and inserting ``the upper limit'', and
(B) by striking ``$1,600'' each place it appears
and inserting ``the lower limit''.
(2) Definitions.--Section 1402 of such Code is amended by
adding at the end the following new subsection:
``(l) Upper and Lower Limits.--For purposes of subsection (a)--
``(1) Lower limit.--The lower limit for any taxable year is
the sum of the amounts required under section 213(d) of the
Social Security Act for a quarter of coverage in effect with
respect to each calendar quarter ending with or within such
taxable year.
``(2) Upper limit.--The upper limit for any taxable year is
the amount equal to 150 percent of the lower limit for such
taxable year.''.
(b) Amendments to the Social Security Act.--
(1) In general.--The matter following paragraph (15) of
section 211(a) of the Social Security Act is amended--
(A) by striking ``$2,400'' each place it appears
and inserting ``the upper limit'', and
(B) by striking ``$1,600'' each place it appears
and inserting ``the lower limit''.
(2) Definitions.--Section 211 of such Act is amended by
adding at the end the following new subsection:
``Upper and Lower Limits
``(k) For purposes of subsection (a)--
``(1) The lower limit for any taxable year is the sum of
the amounts required under section 213(d) for a quarter of
coverage in effect with respect to each calendar quarter ending
with or within such taxable year.
``(2) The upper limit for any taxable year is the amount
equal to 150 percent of the lower limit for such taxable
year.''.
(3) Conforming amendment.--Section 212 of such Act is
amended--
(i) in subsection (b), by striking ``For''
and inserting ``Except as provided in
subsection (c), for''; and
(ii) by adding at the end the following new
subsection:
``(c) For the purpose of determining average indexed monthly
earnings, average monthly wage, and quarters of coverage in the case of
any individual who elects the option described in clause (ii) or (iv)
in the matter following section 211(a)(15) for any taxable year that
does not begin with or during a particular calendar year and end with
or during such year, the self-employment income of such individual
deemed to be derived during such taxable year shall be allocated to the
two calendar years, portions of which are included within such taxable
year, in the same proportion to the total of such deemed self-
employment income as the sum of the amounts applicable under section
213(d) for the calendar quarters ending with or within each such
calendar year bears to the lower limit for such taxable year specified
in section 211(k)(1).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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