1. Short title
This Act may be cited as the “Let Seniors Work Act of 2014”.
Let Seniors Work Act of 2014
A BILL
To eliminate the payroll tax for individuals who have attained retirement age, to amend title II of the Social Security Act to remove the limitation upon the amount of outside income which an individual may earn while receiving benefits under such title, and for other purposes.
2. Elimination of payroll tax for individuals who have attained retirement age
in subsection (a), by striking “subsection (b) or (c)” and inserting “subsection (b), (c), or (e)”,
in subsection (b), by striking “subsection (c)” and inserting “subsections (c) and (e)”, and
by adding at the end the following new subsection:
“(e) Notwithstanding any other provision of law, the contribution and benefit base determined under this section for any calendar year after 2014 for any individual who has attained retirement age (as defined in section 216(l)(1)) shall be reduced to zero.”
Effective date— The amendments made by this section shall apply to remuneration paid in any calendar year after 2014.
3. Repeal of provisions relating to deductions on account of work
In general— Subsections (b), (c)(1), (d), (f), (h), (j), and (k) of section 203 of the Social Security Act (42 U.S.C. 403) are repealed.
Conforming amendments— Section 203 of such Act (as amended by subsection (a)) is further amended—
in subsection (c), by redesignating such subsection as subsection (b), and—
by striking “Noncovered Work Outside the United States or” in the heading;
by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively;
by striking “For purposes of paragraphs (2), (3), and (4)” and inserting “For purposes of paragraphs (1), (2), and (3)”; and
by striking the last sentence;
in subsection (e), by redesignating such subsection as subsection (c), and by striking “subsections (c) and (d)” and inserting “subsection (b)”;
in subsection (g), by redesignating such subsection as subsection (d), and by striking “subsection (c)” each place it appears and inserting “subsection (b)”; and
in subsection (l), by redesignating such subsection as subsection (e), and by striking “subsection (g) or (h)(1)(A)” and inserting “subsection (d)”.
4. Additional conforming amendments
Provisions relating to benefits terminated upon deportation— Section 202(n)(1) of the Social Security Act (42 U.S.C. 402(n)(1)) is amended by striking “Section 203 (b), (c), and (d)” and inserting “Section 203(b)”.
Provisions relating to exemptions from reductions based on early retirement—
Section 202(q)(5)(B) of such Act (42 U.S.C. 402(q)(5)(B)) is amended by striking “section 203(c)(2)” and inserting “section 203(b)(1)”.
Section 202(q)(7)(A) of such Act (42 U.S.C. 402(q)(7)(A)) is amended by striking “deductions under section 203(b), 203(c)(1), 203(d)(1), or 222(b)” and inserting “deductions on account of work under section 203 or deductions under section 222(b)”.
Provisions relating to exemptions from reductions based on disregard of certain entitlements to child’s insurance benefits—
Section 202(s)(1) of such Act (42 U.S.C. 402(s)(1)) is amended by striking “paragraphs (2), (3), and (4) of section 203(c)” and inserting “paragraphs (1), (2), and (3) of section 203(b)”.
Section 202(s)(3) of such Act (42 U.S.C. 402(s)(3)) is amended by striking “The last sentence of subsection (c) of section 203, subsection (f)(1)(C) of section 203, and subsections” and inserting “Subsections”.
Provisions relating to suspension of aliens' benefits— Section 202(t)(7) of such Act (42 U.S.C. 402(t)(7)) is amended by striking “Subsections (b), (c), and (d)” and inserting “Subsection (b)”.
Provisions relating to reductions in benefits based on maximum benefits— Section 203(a)(3)(B)(iii) of such Act (42 U.S.C. 403(a)(3)(B)(iii)) is amended by striking “and subsections (b), (c), and (d)” and inserting “and subsection (b)”.
Provisions relating to penalties for misrepresentations concerning earnings for periods subject to deductions on account of work— Section 208(a)(1)(C) of such Act (42 U.S.C. 408(a)(1)(C)) is amended by striking “under section 203(f) of this title for purposes of deductions from benefits” and inserting “under section 203 for purposes of deductions from benefits on account of work”.
Provisions taking into account earnings in determining benefit computation years— Clause (I) in the next to last sentence of section 215(b)(2)(A) of such Act (42 U.S.C. 415(b)(2)(A)) is amended by striking “no earnings as described in section 203(f)(5) in such year” and inserting “no wages, and no net earnings from self-employment (in excess of net loss from self-employment), in such year”.
Provisions relating to rounding of benefits— Section 215(g) of such Act (42 U.S.C. 415(g)) is amended by striking “and any deduction under section 203(b)”.
Provisions relating to earnings taken into account in determining substantial gainful activity of blind individuals— The second sentence of section 223(d)(4)(A) of such Act (42 U.S.C. 423(d)(4)(A)) is amended by striking “if section 102 of the Senior Citizens Right to Work Act of 1996 had not been enacted” and inserting the following: “if the amendments to section 203 made by section 102 of the Senior Citizens Right to Work Act of 1996 and by the Social Security Earnings Test Repeal Act of 2014 had not been enacted”.
Provisions defining income for purposes of SSI— Section 1612(a) of such Act (42 U.S.C. 1382a(a)) is amended—
by striking “as determined under section 203(f)(5)(C)” in paragraph (1)(A) and inserting “as defined in the last two sentences of this subsection”; and
by adding at the end (after and below paragraph (2)(H)) the following:
Repeal of deductions on account of work under the Railroad Retirement Program—
by striking subsection (f); and
by striking subsection (g)(2) and by redesignating subsection (g)(1) as subsection (g).
Conforming amendments—
Section 3(f)(1) of such Act (45 U.S.C. 231b(f)(1)) is amended in the first sentence by striking “before any reductions under the provisions of section 2(f) of this Act,”.
Section 4(g)(2) of such Act (45 U.S.C. 231c(g)(2)) is amended—
in clause (i), by striking “shall, before any deductions under section 2(g) of this Act,” and inserting “shall”; and
in clause (ii), by striking “any deductions under section 2(g) of this Act and before”.
5. Effective date
The amendments and repeals made by sections 3 and 4 of this Act shall apply with respect to taxable years ending on or after the date of the enactment of this Act.