increase of earnings counted for benefit and tax purposes

increase of earnings counted for benefit and tax purposes Sec. 203. (a) (1) (A) Section 209(a)(6) of the Social Security Act is amended by inserting “and prior to 1973” after “1971”. (B) Section 209(a) of such Act is further amended by adding at the end thereof the following new paragraphs: “(7) That part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to $10,800 with respect to employment has been paid to an individual during any calendar year after 1972 and prior to 1974, is paid to such individual during such calendar year; 86 Stat. 418 “(8) That part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to $12,000 with respect to employment has been paid to an individual during any calendar year after 1973 and prior to 1975, is paid to such individual during such calendar year; “(9) That part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to the contribution and benefit base (determined under section 230) with respect to employment has been paid to an individual during any calendar year after 1974 with respect to which such contribution and benefit base is effective, is paid to such individual during such calendar year (2) (A) Section 211 (b)(1)(F) of such Act is amended by inserting “and prior to 1973” after “1971”, 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 subparagraphs: “(G) For any taxable year beginning after 1972 and prior to 1974, (i) $10,800, minus (ii) the amount of the wages paid to such individual during the taxable year; and “(H) For any taxable year beginning after 1973 and prior to 1975, (i) $12,000, minus (ii) the amount of the wages paid to such individual during the taxable year; and “(I) For any taxable year beginning in any calendar year after 1974, (i) an amount equal to the contribution and benefit base (as determined under section 230) which is effective for such calendar year, minus (ii) the amount of the wages paid to such individual during such taxable year; or”. (3) (A) Section 213(a)(2)(ii) of such Act is amended by striking out “after 1971” and inserting in lieu thereof “after 1971 and before 1973, or $10,800 in the ease of a calendar year after 1972 and before 1974, or $12,000 in the case of a calendar year after 1973 and before 1975, or an amount equal to the contribution and benefit base (as determined under section 230) in the case of any calendar year after 1974 with respect to which such contribution and benefit base is effective”. (B) Section 213(a)(2)(iii) of such Act is amended by striking out “after 1971” and inserting in lieu thereof “after 1971 and before 1973, or $10,800 in the case of a taxable year beginning after 1972 and before 1974, or $12,000 in the case of a taxable year beginning after 1973 and before 1975, or an amount equal to the contribution and benefit base (as determined under section 230) which is effective for the calendar year in the case of any taxable year beginning in any calendar year after 1974”. (4) Section 215(e)(1) of such Act is amended by striking out “and the excess over $9,000 in the case of any calendar year after 1971” and inserting in lieu thereof “the excess over $9,000 in the case of any calendar year after 1971 and before. 1973, the excess over $10,800 in the case of any calendar year after 1972 and before 1974, the excess over $12,000 in the ease of any calendar year after 1973 and before 1975, and the excess over an amount equal to the contribution and benefit base (as determined under section 230) in the case of any calendar year after 1974 with respect to which such contribution and benefit base is effective”. (b) (1) (A) Section 1402(b)(1)(F) of the Internal Revenue Code of 1954 (relating to definition of self-employment income) is amended 86 Stat. 419by inserting “and before 1973” after “1971”, 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 subparagraphs: “(G) for any taxable year beginning after 1972 and before 1974, (i) $10,800, minus (ii) the amount of the wages paid to such individual during the taxable year; “(H) for any taxable year beginning after 1973 and before 1975, (i) $12,000, minus (ii) the amount of the wages paid to such individual during the taxable year; and “(I) for any taxable year beginning in any calendar year after 1974, (i) an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for such calendar year, minus (ii) the amount of the wages paid to such individual during such taxable year; or”. (2) (A) Section 3121(a)(1) of such Code (relating to definition of wages) is amended by striking out “$9,000” each place it appears and inserting in lieu thereof “$10,800”. (B) Effective with respect to remuneration paid after 1973, section 3121(a)(1) of such Code is amended by striking out “$10,800” each place it appears and inserting in lieu thereof “$12,000”. (C) Effective with respect to remuneration paid after 1974, section 3121(a)(1) of such Code is amended— (i) by striking out “$12,000” each place it appears and inserting in lieu thereof “the contribution and benefit base (as determined under section 230 of the Social Security Act)”, and (ii) by striking out “by an employer during any calendar year”, and inserting in lieu thereof “by an employer during the calendar year with respect to which such contribution and benefit base is effective”. (3) (A) The second sentence of section 3122 of such Code (relating to Federal service) is amended by striking out “$9,000” and inserting in lieu thereof “$10,800”. (B) Effective with respect to remuneration paid after 1973, the second sentence of section 3122 of such Code is amended by striking out “$10,800” and inserting in lieu thereof “$12,000”. (C) Effective with respect to remuneration paid after 1974, the second sentence of section 3122 of such Code is amended by striking out “the $12,000 limitation” and inserting in lieu thereof “the contribution and benefit base limitation”. (4) (A) 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 “$9,000” where it appears in subsections (a), (b), and (c) and inserting in lieu thereof “$10,800”. (B) Effective with respect to remuneration paid after 1973, section 3125 of such Code is amended by striking out “$10,800” where it appears in subsections (a), (b), and (c) and inserting in lieu thereof “$12,000”. (C) Effective with respect to remuneration paid after 1974, section 3125 of such Code is amended by striking out “the $12,000 limitation” where it appears in subsections (a), (b), and (c) and inserting in lieu thereof “the contribution and benefit base limitation”. (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 1973” after “the calendar year 1971”; 86 Stat. 420 (B) by inserting after “exceed $9,000,” the following: “or (F) during any calendar year after the calendar year 1972 and prior to the calendar year 1974, the wages received by him during such year exceed $10,800, or (G) during any calendar year after the calendar year 1973 and prior to the calendar year 1975, the wages received by him during such year exceed $12,000, or (H) during any calendar year after 1974, the wages received by him during such year exceed the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective with respect to such year,”l and (C) by inserting before the period at the end thereof the following; “and before 1973, or which exceeds the tax with respect to the first $10,800 of such wages received in such calendar year after 1972 and before 1974, or which exceeds the tax with respect to the first $12,000 of such wages received in such calendar year after 1973 and before 1975, or which exceeds the tax with respect to an amount of such wages received in such calendar year after 1974 equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective with respect to such year”. (6) Section 6413(a)(2)(A) of such Code (relating to refunds of employment taxes in the case of Federal employees) is amended by striking out “or $9,000 for any calendar year after 1971” and inserting in lieu thereof “$9,000 for the calendar year 1972, $10,800 for the calendar year 1973, $12,000 for the calendar year 1974, or an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) for any calendar year after 1974 with respect to which such contribution and benefit base is effective”. (7) (A) Section 6654(d)(2)(B)(ii) of such Code (relating to failure by individual to pay estimated income tax) is amended by striking out “$9,000” and inserting in lieu thereof “$10,800”. (B) Effective with respect to taxable years beginning after 1973, section 6654(d)(2)(B)(h) of such Code is amended by striking out “$10,800” and inserting in lieu thereof “$12,000”. (C) Effective with respect to taxable years beginning after 1974, section 6654(d)(2)(B)(ii) of such Code is amended by striking out “the excess of $12,000 over the amount” and inserting in lien thereof “the 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 the taxable year begins, over (II) the amount”. (c) The amendments made by subsections (a)(1) and (a)(3)(A), and the amendments made by subsection (b)(except paragraphs (1) and (7) thereof), shall apply only with respect to remuneration paid after December 1972. The amendments made by subsections (a)(2), (a)(3)(B), (b)(1), and (b)(7) shall apply only with respect to taxable years beginning after 1972. The amendment made by subsection (a)(4) shall apply only with respect to calendar years after 1972.