1 2 59 INCREASE OF EARNINGS COUNTED FOR BENEFIT AND TAX PURPOSES 3 SEC. 122. (a) (1) (A) Section 209 (a) (5) of the So4 cial Security Act is amended by inserting "and prior to 5 1971" after "1967". 6 (B) Section 209 (a) of such Act is further amended by 7 adding at the end thereof the following new paragraphs: 8 "(6) That part of remuneration which, after remunera9 tion (other than remuneration referred to in the succeeding 10 subsections of this section) equal to $9,000 with respect to 11 employment has been paid to an individual during any calen12 dar year after 1970 and prior to 1973, is paid to such indi13 vidual during any such calendar year; 14 "(7) That part of remuneration which, after remunera15 tion (other than remuneration referred to in the succeeding 16 subsections of this section) equal to the contribution and 17 benefit base (determined under section 230) with respect 18 to employment has been paid to an individual during any 19 calendar year after 1972 with respect to which such contri20 bution and benefit base is effective, is paid to such individual 21 during such calendar year;". 22 (2) (A) Section 211 (b) (1) (E) of such Act is 60 1 amended by inserting "and beginning prior to 1971" after 2 "1967", and by striking out "; or" and inserting in lieu 3 thereof "; and ". 4 (B) Section 211 (b) (1) of such Act is further amended 5 by adding at the end thereof the following new subpara6 graphs: 18 "(F) For any taxable year beginning after 1970 and prior to 1973, (i) $9,000, minus (ii) the amount of the wages paid to such individual during the taxable year; and "(G) For any taxable year beginning in any calendar year after 1972, (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 19 amended by striking out "after 1967" and inserting in lieu 20 thereof "after 1967 and before 1971, or $9,000 in the case 21 of a calendar year after 1970 and before 1973, or an amount equal to the contribution and benefit base (as determined 23 under section 230) in the case of any calendar year after 24 1972 with respect to which such contribution and benefit 25 base is effective". 22 61 1 (B) Section 213 (a) (2) (iii) of such Act is amended 2 by striking out "after 1967" and inserting in lieu thereof 3 "after 1967 and beginning before 1971, or $9,000 in the 4 case of a taxable year beginning after 1970 and before 1973, 5 6 or in the case of any taxable year beginning in any calendar year after 1972, an amount equal to the contribution and 7 benefit base (as determined under section 230) which 8 is effective for such calendar year". 9 (4) Section 215 (e) (1) of such Act is amended by 10 11 12 13 striking out “and the excess over $7,800 in the case of any calendar year after 1967" and inserting in lieu thereof "the excess over $7,800 in the case of any calendar year after 1967 and before 1971, the excess over $9,000 in the case 14 of any calendar year after 1970 and before 1973, and the 15 excess over an amount equal to the contribution and bene16 fit base (as determined under section 230) in the case of any calendar year after 1972 with respect to which such 18 contribution and benefit base is effective". 17 19 (b) (1) (A) Section 1402 (b) (1) (E) of the Internal 20 Revenue Code of 1954 (relating to definition of self-em21 ployment income) is amended by inserting "and beginning 22 before 1971" after "1967", and by striking out "; or" and 23 inserting in lieu thereof "; and". 24 (B) Section 1402 (b) (1) of such Code is further 62 1 amended by adding at the end thereof the following new 2 subparagraphs: 3 4 5 67 8 9 10 11 12 13 14 17 "(F) for any taxable year beginning after 1970 and before 1973, (i) $9,000, minus (ii) the amount of the wages paid to such individual during the taxable year; and "(G) for any taxable year beginning in any calendar year after 1972, (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 15 to definition of wages) is amended by striking out "$7,800" 16 each place it appears and inserting in lieu thereof "$9,000". (B) Effective with respect to remuneration paid after 18 1972, section 3121 (a) (1) of such Code is amended (1) by 19 striking out "$9,000" each place it appears and inserting in 20 lieu thereof "the contribution and benefit base (as deter21 mined under section 230 of the Social Security Act)", and 22 (2) by striking out "by an employer during any calendar 23 year", and inserting in lieu thereof "by an employer during 24 the calendar year with respect to which such contribution 25 and benefit base is effective". 1 63 (3) (A) The second sentence of section 3122 of such 2 Code (relating to Federal service) is amended by striking 3 out "$7,800" and inserting in lieu thereof "$9,000”. 4 (B) Effective with respect to remuneration paid after 5 1972, the second sentence of section 3122 of such Code is 6 amended by striking out "$9,000" and inserting in lieu 7 thereof "the contribution and benefit base”. 8 (4) (A) Section 3125 of such Code (relating to returns 9 in the case of governmental employees in Guam, American 10 Samoa, and the District of Columbia) is amended by striking 11 out "$7,800" where it appears in subsections (a), (b), and 12 (c) and inserting in lieu thereof “$9,000”. 13 (B) Effective with respect to remuneration paid after 14 1972, section 3125 of such Code is amended by striking out 15 "$9,000" where it appears in subsections (a), (b), and 16 (c) and inserting in lieu thereof "the contribution and bene17 fit base". 18 (5) Section 6413 (c) (1) of such Code (relating to 19 special refunds of employment taxes) is amended (A) by inserting "and prior to the calendar year 1971" after "after the calendar year 1967"; (B) by inserting after "exceed $7,800" the following: "or (E) during any calendar year after the calendar year 1970 and prior to the calendar year 1973, the wages received by him during such year exceed 47-530-70 - 16 |