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87 STAT. 952

Effective date.
86 Stat. 411.
42 USC 427,
428.

42 USC 415.

Repeal.

86 Stat. 412.

53 Stat. 1362.
42 USC 401.
74 Stat. 947;
85 Stat. 802.

86 Stat. 416.

86 Stat. 412. 42 USC 415.

Post, p. 953.

86 Stat. 417. 42 USC 430.

(b) (1) Effective June 1, 1974, sections 227 and 228 of the Social Security Act are amended by striking out "$58.00" wherever it appears and inserting in lieu thereof "the larger of $64.40 or the amount most recently established in lieu thereof under section 215 (i)", and by striking out "$29.00" wherever it appears and inserting in lieu thereof "the larger of $32.20 or the amount most recently established in lieu thereof under section 215 (i)".

(2) Section 202 (a) (4) of Public Law 92-336 is hereby repealed. (c) The amendment made by subsections (a) and (b) shall apply with respect to monthly benefits under title II of the Social Security Act for months after May 1974, and with respect to lump-sum death payments under section 202 (i) of such Act in the case of deaths occurring after such month.

(d) Section 202(a)(3) of Public Law 92-336 is amended by striking out "January 1, 1975" in subparagraphs (A), (B), and (C) and inserting in lieu thereof in each instance "June 1, 1974”.

MODIFICATION OF COST-OF-LIVING BENEFIT INCREASE PROVISIONS

SEC. 3. (a) Clause (i) of section 215 (i) (1) (A) of the Social Security Act is amended to read as follows: "(i) the calendar quarter ending on March 31 in each year after 1974, or".

(b) Clause (ii) of section 215 (i) (1) (B) of such Act is amended by striking out "in which a law" and all that follows and inserting in lieu thereof "if in the year prior to such year a law has been enacted providing a general benefit increase under this title or if in such prior year such a general benefit increase becomes effective; and".

(c) Section 215 (i) (2) (A) (i) of such Act is amended by striking out "1974" and inserting in lieu thereof "1975", and by striking out "and to subparagraph (E) of this paragraph".

(d) Section 215 (í) (2) (A) (ii) of such Act is amended

(1) by striking out "such base quarter" and inserting in lieu thereof "the base quarter in any year;

(2) by striking out "January of the next calendar year" and inserting in lieu thereof "June of such year"; and

(3) by striking out "(subject to subparagraph (E))". (e) Section 215 (i) (2) (B) of such Act is amended by striking out "December" each place it appears and inserting in lieu thereof "May", and by striking out "(subject to subparagraph_(E))".

(f) Section 215 (i) (2) (C') (ii) of such Act is amended by striking out "on or before August 15 of such calendar year" and inserting in lieu thereof "within 30 days after the close of such quarter".

(g) Section 215 (i) (2) (D) of such Act is amended by striking out "on or before November 1 of such calendar year" and inserting in lieu thereof "within 45 days after the close of such quarter".

(h) Section 215 (i) (2) of such Act is amended by striking out subparagraph (E).

(i) For purposes of section 203 (f) (8), so much of section 215 (i) (1) (B) as follows the semicolon, and section 230 (a) of the Social Security Act, the increase in benefits provided by section 2 of this Act shall be considered an increase under section 215 (i) of the Social Security Act. (j) (1) Section 230 (a) of such Act is amended

(A) by striking out "with the first month of the calendar year" and inserting in lieu thereof "with the June"; and

(B) by striking out "(along with the publication of such benefit increase as required by section 215 (i) (2) (D))" and by striking out "(unless such increase in benefits is prevented from becoming effective by section 215 (i) (2) (E))".

(2) Section 230 (c) of such Act is amended by striking out "the first month" and inserting in lieu thereof "the June". (k) (1) Section 203(f) (8) (A) of such Act is amended to read as follows:

"(A) Whenever the Secretary pursuant to section 215 (i) increases benefits effective with the month of June following a costof-living computation quarter he shall also determine and publish in the Federal Register on or before November 1 of the calendar year in which such quarter occurs a new exempt amount which shall be effective (unless such new exempt amount is prevented from becoming effective by subparagraph (C) of this paragraph) with respect to any individual's taxable year which ends after the calendar year in which such benefit increase is effective (or, in the case of an individual who dies during the calendar year after the calendar year in which the benefit increase is effective, with respect to such individual's taxable year which ends, upon his death, during such year).".

(2) Section 203 (f) (8) (B) of such Act is amended by striking out "no later than August 15 of such year" and inserting in lieu thereof "within 30 days after the close of the base quarter (as defined in section 215(i) (1) (A)) in such year".

(3) Section 203 (f) (8) (C) is amended by striking out "or providing a general benefit increase under this title (as defined in section 215 (i) (3))".

SUPPLEMENTAL SECURITY INCOME BENEFITS

87 STAT. 953

86 Stat. 417.

42 Stat. 430.

86 Stat. 1342.

42 USC 403.

42 USC 415.

SEC. 4. (a) (1) Section 210 (c) of Public Law 93-66 is amended by Ante, p. 154. striking out "June 1974" and inserting in lieu thereof "December 1973".

(2) Section 211(a)(1)(A) of Public Law 93-66 is amended by striking out "($780 in the case of any period prior to July 1974)”. (b) Effective with respect to payments for months after June 1974(1) section 1611(a)(1)(A) and section 1611(b) (1) of the Social Security Act (as enacted by section 301 of the Social Security Amendments of 1972 and amended by section 210 of Public

Law 93-66) are each amended by striking out "$1,680" and insert- 86 Stat. 1466; ing in lieu thereof "$1,752"; Ante, p. 154.

(2) section 1611(a)(2)(A) and section 1611(b)(2) of such 42 USC 1382. Act (as so enacted and amended) are each amended by striking

out "$2,520" and inserting in lieu thereof "$2,628"; and

(3) section 211(a)(1)(A) of Public Law 93-66 (as amended

by subsection (a) (2) of this section) is amended by striking out "$840" and inserting in lieu thereof "$876".

INCREASE IN EARNINGS BASE

SEC. 5. (a) (1) Section 209 (a) (8) of the Social Security Act is Ante, p. 153. amended by striking out "$12,600" and inserting in lieu thereof

"$13,200".

(2) Section 211(b) (1) (H) of such Act is amended by striking out

"$12,600" and inserting in lieu thereof "$13,200".

(3) Sections 213(a) (2) (ii) and 213(a)(2) (iii) of such Act are each amended by striking out "$12,600" and inserting in lieu thereof “$13,200".

(4) Section 215 (e) (1) of such Act is amended by striking out "$12,600" and inserting in lieu thereof "$13,200".

87 STAT. 954

Ante, p. 453.

Effective date.
86 Stat. 419.
26 USC 3121.

Effective date.

49 Stat. 620. 42 USC 1305. 68A Stat. 3. 26 USC 1 et seg.

86 Stat. 406. Ante, p. 153. 86 Stat. 1362. 26 USC 3101.

(b) (1) Section 1402(b) (1) (H) of the Internal Revenue Code of 1954 (relating to definition of self-employment income) is amended by striking out "$12,600" and inserting in lieu thereof "$13,200".

(2) Effective with respect to remuneration paid after 1973, section 3121(a)(1) of such Code is amended by striking out the dollar amount cach place it appears therein and inserting in lieu thereof "$13,200".

(3) Effective with respect to remuneration paid after 1973, the second sentence of section 3122 of such Code is amended by striking out the dollar amount and inserting in lieu thereof "$13,200".

(4) Effective with respect to remuneration paid after 1973, section 3125 of such Code is amended by striking out the dollar amount each place it appears in subsections (a), (b), and (c) and inserting in lieu thereof "$13,200".

(5) Section 6413 (c) (1) of such Code (relating to special refunds of employment taxes) is amended by striking out "$12,600" each place it appears and inserting in lieu thereof "$13,200".

(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 "$12,600" and inserting in lieu thereof "$13,200".

(7) Effective with respect to taxable years beginning after 1973, section 6654 (d) (2) (B) (ii) of such Code (relating to failure by individual to pay estimated income tax) is amended by striking out the dollar amount and inserting in lieu thereof "$13,200".

(c) Section 230 (c) of the Social Security Act is amended by striking out "$12,600" and inserting in lieu thereof "$13.200".

(d) Paragraphs (2) (C), (3) (C), (4) (C'), and (7)(C) of section 203 (b) of Public Law 92-336 are each amended by striking out "$12,600" and inserting in lieu thereof "$13,200".

(e) The amendments made by this section, except subsection (a) (4), shall apply only with respect to remuneration paid after, and taxable years beginning after, 1973. The amendments made by subsection (a) (4) shall apply with respect to calendar years after 1973.

(f) The amendments made by this section to provisions of the Social Security Act, the Internal Revenue Code of 1954, and Public Law 92-336 shall be deemed to be made to such provisions as amended by section 203 of Public Law 93-66.

CHANGES IN TAX SCHEDULES

SEC. 6. (a) (1) Section 3101 (a) of the Internal Revenue Code of 1954 (relating to rate of tax on employees for purposes of old-age, survivors, and disability insurance) is amended by striking out paragraphs (4) through (6) and inserting in lieu thereof the following:

"(4) with respect to wages received during the calendar year 1973, the rate shall be 4.85 percent;

"(5) with respect to wages received during the calendar years 1974 through 2010, the rate shall be 4.95 percent; and

"(6) with respect to wages received after December 31, 2010, the rate shall be 5.95 percent."

(2) Section 3111(a) of such Code (relating to rate of tax on employers for purposes of old-age, survivors, and disability insurance) is amended by striking out paragraphs (4) through (6) and inserting in lieu thereof the following:

"(4) with respect to wages paid during the calendar year 1973, the rate shall be 4.85 percent;

"(5) with respect to wages paid during the calendar years 1974 through 2010, the rate shall be 4.95 percent; and

"(6) with respect to wages paid after December 31, 2010, the rate shall be 5.95 percent.".

87 STAT. 955

(b) (1) Section 1401 (b) of such Code (relating to rate of tax on 86 Stat. 1363. self-employment income for purposes of hospital insurance) is 26 USC 1401. amended by striking out paragraphs (2) through (5) and inserting

in lieu thereof the following:

"(2) in the case of any taxable year beginning after December 31, 1972, and before January 1, 1974, the tax shall be equal to 1.0 percent of the amount of the self-employment income for such taxable year;

"(3) in the case of any taxable year beginning after December 31, 1973, and before January 1, 1978, the tax shall be equal to 0.90 percent of the amount of the self-employment income for such taxable year;

"(4) in the case of any taxable year beginning after December 31, 1977, and before January 1, 1981, the tax shall be equal to 1.10 percent of the amount of the self-employment income for such taxable year;

"(5) in the case of any taxable year beginning after December 31, 1980, and before January 1, 1986, the tax shall be equal to 1.35 percent of the amount of the self-employment income for such taxable year; and

"(6) in the case of any taxable year beginning after December 31, 1985, the tax shall be equal to 1.50 percent of the selfemployment income for such taxable year."

(2) Section 3101(b) of such Code (relating to rate of tax on employees for purposes of hospital insurance) is amended by striking out paragraphs (2) through (5) and inserting in lieu thereof the following:

"(2) with respect to wages received during the calendar year 1973, the rate shall be 1.0 percent ;

"(3) with respect to wages received during the calendar years 1974 through 1977, the rate shall be 0.90 percent:

(4) with respect to wages received during the calendar years

1978 through 1980, the rate shall be 1.10 percent;

"(5) with respect to wages received during the calendar years 1981 through 1985, the rate shall be 1.35 percent ; and

"(6) with respect to wages received after December 31, 1985, the rate shall be 1.50 percent.".

(3) Section 3111(b) of such Code (relating to rate of tax on employers for purposes of hospital insurance) is amended by striking out paragraphs (2) through (5) and inserting in lieu thereof the following:

(2) with respect to wages paid during the calendar year 1973, the rate shall be 1.0 percent;

66

“(3) with respect to wages paid during the calendar years 1974 through 1977, the rate shall be 0.90 percent ;

"(4) with respect to wages paid during the calendar years 1978 through 1980, the rate shall be 1.10 percent;

"(5) with respect to wages paid during the calendar years 1981 through 1985, the rate shall be 1.35 percent; and

"(6) with respect to wages paid after December 31, 1985, the

rate shall be 1.50 percent.".

(c) The amendment made by subsection (b)(1) shall apply only Effective date. with respect to taxable years beginning after December 31, 1973. The remaining amendments made by this section shall apply only with

respect to remuneration paid after December 31, 1973.

ALLOCATION TO DISABILITY INSURANCE TRUST FUND

SEC. 7. (a) Section 201(b)(1) of the Social Security Act is 86 Stat. 1364. amended by striking out "(E)" and all that follows down through 42 USC 401.

87 STAT. 956

86 Stat. 1364. 42 USC 401.

Ante, p. 246.

86 Stat. 1329.

42 USC 401 note. Ante, p. 221.

42 USC 1381. 42 USC 1382e, Ante, p. 155.

Ante, p. 246.

86 Stat. 1492. 7 USC 1431.

"which wages" and inserting in lieu thereof the following: "(E) 1.1 per centum of the wages (as so defined) paid after December 31, 1972. and before January 1, 1974, and so reported, (F) 1.15 per centum of the wages (as so defined) paid after December 31, 1973, and before January 1, 1978, and so reported, (G) 1.2 per centum of the wages (as so defined) paid after December 31, 1977, and before January 1, 1981. and so reported, (H) 1.3 per centum of the wages (as so defined) paid after December 31, 1980, and before January 1, 1986, and so reported, (1) 1.4 per centum of the wages (as so defined) paid after December 31, 1985, and before January 1, 2011, and so reported, and (J) 1.7 per centum of the wages (as so defined) paid after December 31, 2010, and so reported, which wages".

(b) Section 201 (b) (2) of such Art is amended by striking out "(E)” and all that follows down through "which self-employment income" and inserting in lieu thereof the following: "(E) 0.795 of 1 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1972, and before January 1, 1974, (F) 0.815 of 1 per centum of the amount of selfemployment income (as so defined) as reported for any taxable year beginning after December 31, 1973, and before January 1, 1978, (G) 0.850 of 1 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1977, and before January 1, 1981, (H) 0.920 of 1 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1980, and before January 1, 1986, (I) 0.990 of 1 per centum of the amount of selfemployment income (as so defined) so reported for any taxable year beginning after December 31, 1985, and before January 1, 2011, and (J) 1 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2010, which self-employment income".

ELIGIBILITY OF SUPPLEMENTAL SECURITY INCOME RECIPIENTS FOR FOOD

STAMPS

SEC. 8. (a) (1) Section 3(e) of the Food Stamp Act of 1964 is amended effective only for the 6-month period beginning January 1. 1974 to read as it did before amendment by Public Law 92-603 and Public Law 93-86, but with the addition of the following new sentence at the end thereof: "For the 6-month period beginning January 1, 1974 no individual, who receives supplemental security income benefits under title XVI of the Social Security Act, State supplementary payments described in section 1616 of such Act, or payments of the type referred to in section 212(a) of Public Law 93-66, shall be considered to be a member of a household or an elderly person for purposes of this Act for any month during such period, if, for such month, such individual resides in a State which provides State supplementary payments (A) of the type described in section 1616(a) of the Social Security Act, and (B) the level of which has been found by the Secretary of Health, Education, and Welfare to have been specifically increased so as to include the bonus value of food stamps.". (2) Section 3(b) of Public Law 93-86 shall not be effective for the 6-month period beginning January 1, 1974.

(b) (1) Section (c) of Public Law 93-86 shall not be effective for the 6-month period beginning January 1, 1974.

(2) The last sentence of section 416 of the Act of October 31, 1949 (as added by section 411(g) of Public Law 92–603) shall not be effective for the 6-month period beginning January 1, 1974.

(3) For the 6-month period beginning January 1, 1974, no individual, who receives supplemental security income benefits under title

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