July 20, 2000
House Committee On Ways And Means Markup Of H.R. 4865 The "Social Security Benefits Tax Relief Act"
On June 19, 2000, the House Ways and Means Committee marked up H.R. 4865, the "Social Security Benefits Tax Relief Act" and reported it out of committee by a vote of 24 aye (all Republicans and Kleczka) 15 nay (all Democrats). Full House consideration of the bill has not yet been scheduled.
The bill repeals the 1993 tax provision that made 85% of Social Security benefits includable in gross income and subject to income tax, for individuals with income above $34,000 and for couples with income above $44,000.
The 1993 Act directed all of the revenues from this tax to the Medicare Trust Fund. H.R. 4865, requires general revenues to be transferred to the Medicare Trust fund to replace the revenues lost as a result of this repeal. The general revenue transfer is calculated each year and is equal to the amount of tax that would have been collected had H.R. 4865 not been enacted.
There are no provisions of H.R. 4865 relating to the Social Security program or the OASDI Trust Funds.