S. 397Senate108th Congress (2003-2005)In Committee

Payroll Tax Deduction Act

Introduced February 13, 2003

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S2472)

February 13, 2003

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SenateIntro Referral

Introduced in Senate

February 13, 2003

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S2471-2472)

February 13, 2003

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S2472)

February 13, 2003

Floor Debate

23 members

What members said about S. 397 on the floor

11 Republicans12 Democrats
Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Feb 13, 2003

Mr. President, today I introduce the Federal Death Penalty Abolition Act of 2003. This bill would abolish the death penalty at the Federal level. It would put an immediate halt to executions and…

John Edwards
Sen. John EdwardsD-NC · Feb 13, 2003

Mr. President, I have previously given a statement and a speech on the floor of the Senate with regard to Mr. Estrada's nomination. I voted against him in the Judiciary Committee. The concerns I had…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Feb 13, 2003

Madam President, I rise to introduce legislation that I believe will go a long way in helping to improve the safety and durability of the Nation's highway bridges. Today, with great pleasure I am…

Mike DeWine
Sen. Mike DeWineR-OH · Feb 13, 2003

Madam President, I join several of my colleagues today to introduce a series of bills related to the reauthorization of the Higher Education Act (HEA). These five bills emphasize a number of issues…

Max Baucus
Sen. Max BaucusD-MT · Feb 13, 2003

Mr. President, I am pleased to introduce the Gunsmith Excise Tax Simplification Act of 2003. This bill will protect funding for the Federal Aid to Wildlife Restoration Fund by simplifying…

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Blanche L. Lincoln
Sen. Blanche L. LincolnD-AR · Feb 13, 2003

Madam President, today I am pleased to introduce the Geriatric Care Act of 2003, a bill to increase the number of geriatricians in our country through training incentives and Medicare reimbursement…

Harry Reid
Sen. Harry ReidD-NV · Feb 13, 2003

Madam President, over the last several years, I have tried to correct a long-standing injustice impacting our Nation's veterans. Under a law that is now over 110 years old, most veterans who retire…

Ben Nighthorse Campbell
Sen. Ben Nighthorse CampbellR-CO · Feb 13, 2003

Madam President, today I introduce the ``Campus Classmate Offenders in Rehabilitation and Treatment Act of 2003.'' The legislation I am introducing today is based on legislation I previously…

John Ensign
Sen. John EnsignR-NV · Feb 13, 2003

Mr. President, 194 years ago this week, a son was born to Nancy and Thomas Lincoln in Elizabethtown, Kentucky. That son, Abraham, would go on to become President of the United States at one of the…

John Ensign
Sen. John EnsignR-NV · Feb 13, 2003

Mr. President, 194 years ago this week, a son was born to Nancy and Thomas Lincoln in Elizabethtown, Kentucky. That son, Abraham, would go on to become President of the United States at one of the…

Don Nickles
Sen. Don NicklesR-OK · Feb 13, 2003

Mr. President, I rise today to introduce a bill and to speak about a litigation crisis affecting both the overall well-being of our nation and our ability to stimulate economic recovery. I'm speaking…

Ben Nelson
Sen. Ben NelsonD-NE · Feb 13, 2003

Madam President, I thank you for the opportunity to speak about what is clearly a bipartisan issue. I would like to add to what my colleague from Minnesota said about the Fuels Security Act offered…

Thomas A. Daschle
Sen. Thomas A. DaschleD-SD · Feb 13, 2003

Madam President, headlines in daily papers all across the country underscore our economy's vulnerability to foreign oil. Today, a new generation is learning what many Americans have known since the…

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Norm Coleman
Sen. Norm ColemanR-MN · Feb 13, 2003

Madam President, if I may, in contrast to the very partisan tone of the Estrada filibuster and this partisan divide that is stopping us from moving forward, I want to spend a few minutes talking…

Chuck Hagel
Sen. Chuck HagelR-NE · Feb 13, 2003

Madam President, I come to the floor this morning to speak briefly about an important, comprehensive fuels bill that I will introduce today, along with Senators Daschle, Lugar, Johnson, Voinovich,…

Tim Johnson
Sen. Tim JohnsonD-SD · Feb 13, 2003

Madam President, I am pleased that we are reintroducing renewable fuels legislation and that we are taking time today to talk about the benefits and importance of this bill. I want to acknowledge the…

Pat Roberts
Sen. Pat RobertsR-KS · Feb 13, 2003

Mr. President, I am pleased and honored to join with my colleagues to introduce two pieces of legislation to help meet the child care challenges facing families around the Nation. These bills…

Byron L. Dorgan
Sen. Byron L. DorganD-ND · Feb 13, 2003

Madam President, I am pleased to join my colleagues, Senator Daschle, as well as Senator Lugar, Senator Hagel, Senator Johnson and others in introducing this bipartisan piece of legislation today.…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Feb 13, 2003

Mr. President, I rise today to introduce important tax legislation on behalf of myself and Senators Baucus, Conrad, Crapo, Breaux, Leahy, Harkin, Durbin, Craig, Johnson, Chafee, Snowe, and Kerry.…

John McCain
Sen. John McCainR-AZ · Feb 13, 2003

Madam President, I first introduced legislation on this issue all the way back in 1992. Then again in 1993, then again in 1994, then again in 1995. In 1999, I drafted legislation that became law--as…

Richard G. Lugar
Sen. Richard G. LugarR-IN · Feb 13, 2003

Madam President, I am pleased to join with my colleague, Senator Daschle, in reintroducing the Renewable Fuels Act. I am thankful for this opportunity to remind my colleagues about the importance of…

Jon S. Corzine
Sen. Jon S. CorzineD-NJ · Feb 13, 2003

Mr. President, I rise today with my colleagues, Senators Fitzgerald, Sarbanes, and Akaka to introduce the Education for Retirement Security Act of 2003. This bill will provide access to badly needed…

Jim Bunning
Sen. Jim BunningR-KY · Feb 13, 2003

Mr. President, I rise to introduce, along with Senator Sam Brownback, the Child Modeling Exploitation Prevention Act. Many Senators may not be aware of what I am talking about. I was not until…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Feb 13, 2003

Mr. President, I rise today to speak on an issue of great importance to our military retirees. This issue I want to address is the Survivor's Benefit Plan and the need to eliminate the Social…

Bill Text

Latest available legislative text

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Latest
Introduced in SenateIssued February 13, 2003
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 397 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 397

To amend the Internal Revenue Code of 1986 to allow a deduction for the
old-age, survivors, and disability insurance taxes paid by employees
and self-employed individuals, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

February 13, 2003

Mr. Ensign (for himself and Mrs. Hutchison) introduced the following
bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to allow a deduction for the
old-age, survivors, and disability insurance taxes paid by employees
and self-employed individuals, and for other purposes.

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 ``Payroll Tax Deduction Act''.

SEC. 2. DEDUCTION FOR OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE
TAXES OF EMPLOYEES AND SELF-EMPLOYED INDIVIDUALS.

(a) Taxes of Employees.--
(1) Deduction allowed in arriving at adjusted gross
income.--Section 62(a) of the Internal Revenue Code of 1986
(defining adjusted gross income) is amended by inserting after
paragraph (18) the following new paragraph:
``(19) Employees' oasdi taxes.--The deduction allowed by
section 164(g).''.
(2) Determination of deduction.--Section 164 of such Code
(relating to deduction for taxes) is amended by redesignating
subsection (g) as subsection (h) and by inserting after
subsection (f) the following new subsection:
``(g) Employees' OASDI Taxes.--
``(1) In general.--In the case of an individual, in
addition to the taxes described in subsection (a), there shall
be allowed as a deduction for the taxable year an amount equal
to the sum of--
``(A) the taxes imposed by section 3101(a) for the
taxable year, and
``(B) the taxes imposed by section 3201(a) for the
taxable year but only to the extent attributable to the
percentage in effect under section 3101(a).
``(2) Special rule for certain agreements.--For purposes of
paragraph (1), taxes imposed by section 3101(a) shall include
amounts equivalent to such taxes imposed with respect to
remuneration covered by--
``(A) an agreement under section 218 of the Social
Security Act, or
``(B) an agreement under section 3121(l) (relating
to agreements entered into by American employers with
respect to foreign affiliates).
``(3) Coordination with special refund of social security
taxes.--Taxes shall not be taken into account under paragraph
(1) to the extent the taxpayer is entitled to a special refund
of such taxes under section 6413(c).
``(4) Coordination with earned income credit.--No deduction
shall be allowed under paragraph (1) for any taxable year if
the individual elects to claim the earned income credit under
section 32 for the taxable year.''.
(3) Conforming amendment.--Subsection (a) of section 275 of
such Code is amended in the matter following paragraph (6) by
inserting ``or 164(g)'' after ``164(f)''.
(b) Deduction for Self-Employed Individuals.--
(1) In general.--Paragraph (1) of section 164(f) of the
Internal Revenue Code of 1986 (relating to deduction for one-
half of self-employment taxes) is amended to read as follows:
``(1) In general.--In the case of an individual, in
addition to the taxes described in subsection (a), there shall
be allowed as a deduction for the taxable year an amount equal
to the sum of--
``(A) the taxes imposed by section 1401(a) for such
taxable year, plus
``(B) 50 percent of the taxes imposed by section
1401(b) for such taxable year.
In the case of an individual who elects to claim the earned
income credit under section 32 for the taxable year, only 50
percent of the taxes described in subparagraph (A) shall be
taken into account.''.
(2) Conforming amendments.--
(A) Section 32(a)(1) of such Code is amended by
inserting ``who elects the application of this
section'' after ``eligible individual''.
(B) The heading for section 164(f) of such Code is
amended by striking ``One-Half'' and inserting
``Portion''.
(C) Section 1402(a)(12) of such Code is amended--
(i) by striking ``one-half'' the first
place it appears and inserting ``portion'', and
(ii) by striking subparagraph (B) and
inserting:
``(B) a percentage equal to the sum for such year
of the rate of tax under section 1401(a) and one-half
of the rate of tax under section 1401(b);''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
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