increase of earnings counted for benefit and tax purposes

increase of earnings counted for benefit and tax purposes Sec. 108. (a) (1) (A) Section 209(a)(4) of the Social Security Act is amended by inserting “and prior to 1968” after “1965”. (B) Section 209(a) of such Act is further amended by adding at the end thereof the following new paragraph: “(5) That part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to $7,800 with respect to employment has been paid to an individual during any calendar year after 1967, is paid to such individual during such calendar year;”. (2) (A) Section 211 (b)(1)(D) of such Act is amended by inserting “and prior to 1968” after “1965”, and by striking out “; or” and inserting in lieu thereof “; and”. (B) Section 211(b)(1) of such Act is further amended by adding at the end thereof the following new subparagraph: “(E) For any taxable year ending after 1967, (i) $7,800, minus (ii) the amount of the wages paid to such individual during the taxable year; or”. (3) (A) Section 213(a)(2)(ii) of such Act is amended by striking out “after 1965” and inserting in lieu thereof “after 1965 and before 1968, or $7,800 in the case of a calendar year after 1967”. (B) Section 213(a)(2)(iii) of such Act is amended by striking out “after 1965” and inserting in lieu thereof “after 1965 and before 1968, or $7,800 in the case of a taxable year ending after 1967”. (4) Section 215(e)(1) of such Act is amended by striking out “and the excess over $6,600 in the case of any calendar year after 1965” and inserting in lieu thereof “the excess over $6,600 in the case of any calendar year after 1965 and before 1968, and the excess over $7,800 in the case of any calendar year after 1967”. 81 Stat. 835 (b) (1) (A) Section 1402(b)(1)(D) of the Internal Revenue Code of 1954 (relating to definition of self-employment income) is amended by inserting “and before 1968” after “1965”, and by striking out “; or” and inserting in lieu thereof “; and”. (B) Section 1402 (b)(1) of such Code is further amended by adding at the end thereof the following new subparagraph: “(E) for any taxable year ending after 1967, (i) $7,800, minus (ii) the amount of the wages paid to such individual during the taxable year; or”. (2) Section 3121(a)(1) of such Code (relating to definition of wages) is amended by striking out “$6,600” each place it appears and inserting in lieu thereof “$7,800”. (3) The second sentence of section 3122 of such Code (relating to Federal service) is amended by striking out “$6,600” and inserting in lieu thereof “$7,800”. (4) Section 3125 of such Code (relating to returns in the case of governmental employees in Guam, American Samoa, and the District of Columbia) is amended by striking out “$6,600” each place it appears and inserting in lieu thereof “$7,800”. (5) Section 6413 (c)(1) of such Code (relating to special refunds of employment taxes) is amended— (A) by inserting “and prior to the calendar year 1968” after “the calendar year 1965”; (B) by inserting after “exceed $6,600,” the following: “or (D) during any calendar year after the calendar year 1967, the wages received by him during such year exceed $7,800,”; and (C) by inserting before the period at the end thereof the following: “and before 1968, or which exceeds the tax with respect to the first $7,800 of such wages received in such calendar year after 1967”. (6) Section 6413(c)(2)(A) of such Code (relating to refunds of employment taxes in the case of Federal employees) is amended by striking out “or $6,600 for any calendar year after 1965” and inserting in lieu thereof “$6,600 for the calendar year 1966 or 1967, or $7,800 for any calendar year after 1967”. (c) The amendments made by subsections (a)(1) and (a)(3)(A), and the amendments made by subsection (b)(except paragraph (1) thereof), shall apply only with respect to remuneration paid after December 1967. The amendments made by subsections (a)(2), (a)(3)(B), and (b)(1) shall apply only with respect to taxable years ending after 1967. The amendment made by subsection (a)(4) shall apply only with respect to calendar years after 1967.