[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1950 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 1950
To amend the Internal Revenue Code of 1986 to return the estate, gift,
and generation skipping transfer tax to 2009 levels, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 25, 2019
Mr. Van Hollen introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to return the estate, gift,
and generation skipping transfer tax to 2009 levels, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthen Social Security by Taxing
Dynastic Wealth Act''.
SEC. 2. ESTATE AND GIFT TAX RETURNED TO 2009 LEVELS.
(a) Estate Tax.--
(1) Rate schedule.--The table contained in section 2001(c)
of the Internal Revenue Code of 1986 is amended by striking the
last row and inserting the following:
Over $1,000,000 but not over
$1,250,000.
$345,800, plus 41 percent of
the excess of such
amount over $1,000,000.
Over $1,250,000 but not over
$1,500,000.
$448,300, plus 43 percent of
the excess of such
amount over $1,250,000.
Over $1,500,000................
$555,800, plus 45 percent of
the excess of such
amount over $1,500,000.
(2) Reduction of basic exclusion amount.--Paragraph (3) of
section 2010(c) of the Internal Revenue Code of 1986 is amended
to read as follows:
``(3) Basic exclusion amount.--For purposes of this
subsection, the basic exclusion amount is $3,500,000.''.
(b) Gift Tax.--
(1) Limitation on basic exclusion amount for purposes of
determining applicable credit amount.--Paragraph (1) of section
2505(a) of the Internal Revenue Code of 1986 is amended by
inserting ``(determined as if the basic exclusion amount were
$1,000,000 and the deceased spousal unused exclusion amount was
modified under subsection (d))'' after ``calendar year''.
(2) Modification of deceased spousal unused exclusion
amount.--Section 2505 of such Code is amended by adding at the
end the following:
``(d) Modification of Deceased Spousal Unused Exclusion Amount.--In
the case of a surviving spouse who is the last spouse of the decedent
with respect to whom an election is made under section 2010(c)(5), the
deceased spousal unused exclusion amount with respect to such surviving
spouse shall be determined as if such amount were the lesser of--
``(1) $1,000,000, and
``(2) applicable exclusion amount of the decedent reduced
by the amount with respect to which the tentative tax is
determined under section 2001(b)(1) on the estate of the
decedent.''.
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying and gifts made after December 31,
2019.
SEC. 3. TRANSFER OF ESTATE AND GIFT TAX REVENUE TO COMBINED SOCIAL
SECURITY TRUST FUND.
(a) In General.--Section 201(a) of the Social Security Act (42
U.S.C. 401(a)) is amended to read as follows:
``(a) There is hereby created on the books of the Treasury of the
United States a trust fund to be known as the `Social Security Trust
Fund'. The Social Security Trust Fund shall consist of the securities
held by the Secretary of the Treasury for the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund and the amount standing to the credit of the Federal Old-Age
and Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund on the books of the Treasury on January 1, 2020, which
securities and amount the Secretary of the Treasury is authorized and
directed to transfer to the Social Security Trust Fund, and, in
addition, such gifts and bequests as may be made as provided in
subsection (i)(1), and such amounts as may be appropriated to, or
deposited in, the Social Security Trust Fund as hereinafter provided.
There is hereby appropriated to the Social Security Trust Fund for the
first fiscal year that begins after January 1, 2020, and for each
fiscal year thereafter, out of any moneys in the Treasury not otherwise
appropriated, amounts equivalent to 100 percent of--
``(1) the taxes imposed by chapter 21 (other than sections
3101(b) and 3111(b)) of the Internal Revenue Code of 1986 with
respect to wages (as defined in section 3121 of such Code)
reported to the Secretary of the Treasury pursuant to subtitle
F of the Internal Revenue Code of 1986, as determined by the
Secretary of the Treasury by applying the applicable rates of
tax under such chapter (other than sections 3101(b) and
3111(b)) to such wages, which wages shall be certified by the
Commissioner of Social Security on the basis of the records of
wages established and maintained by such Commissioner in
accordance with such reports;
``(2) the taxes imposed by chapter 2 (other than section
1401(b)) of the Internal Revenue Code of 1986 with respect to
self-employment income (as defined in section 1402 of such
Code) reported to the Secretary of the Treasury on tax returns
under subtitle F of such Code, as determined by the Secretary
of the Treasury by applying the applicable rate of tax under
such chapter (other than section 1401(b)) to such self-
employment income, which self-employment income shall be
certified by the Commissioner of Social Security on the basis
of the records of self-employment income established and
maintained by the Commissioner of Social Security in accordance
with such returns; and
``(3) the taxes imposed by subtitle B of the Internal
Revenue Code of 1986, as determined by the Secretary of the
Treasury on the basis of tax returns under subpart C of part II
of subchapter A of chapter 61 of subtitle F of such Code.
The amounts appropriated by paragraphs (1), (2), and (3) shall be
transferred from time to time from the general fund in the Treasury to
the Social Security Trust Fund, such amounts to be determined on the
basis of estimates by the Secretary of the Treasury of the taxes,
specified in such paragraphs, paid to or deposited into the Treasury;
and proper adjustments shall be made in amounts subsequently
transferred to the extent prior estimates were in excess of or were
less than the taxes specified in such paragraphs. All amounts
transferred to the Social Security Trust Fund under the preceding
sentence shall be invested by the Managing Trustee in the same manner
and to the same extent as the other assets of the Trust Fund.
Notwithstanding the preceding sentence, in any case in which the
Secretary of the Treasury determines that the assets of the Trust Fund
would otherwise be inadequate to meet the Trust Fund's obligations for
any month, the Secretary of the Treasury shall transfer to the Trust
Fund on the first day of such month the total amount which would have
been transferred to the Trust Fund under this section as in effect on
October 1, 1990; and the Trust Fund shall pay interest to the general
fund on the amount so transferred on the first day of any month at a
rate (calculated on a daily basis, and applied against the difference
between the amount so transferred on such first day and the amount
which would have been transferred to the Trust Fund up to that day
under the procedures in effect on January 1, 1983) equal to the rate
earned by the investments of the Trust Fund in the same month under
subsection (d).''.
(b) Required Actuarial Analysis.--Section 201(c) of the Social
Security Act is amended by striking the fourth sentence in the matter
following paragraph (5) and inserting the following: ``Such report
shall also include actuarial analysis of the benefit cost with respect
to disabled beneficiaries and their auxiliaries, to retired
beneficiaries and their auxiliaries, and to survivor beneficiaries.''.
(c) Board of Trustees.--
(1) Board of trustees of social security trust fund.--
Section 201(c) of the Social Security Act, as amended by
subsection (b) of this section, is further amended in the
matter preceding paragraph (1) by striking ``the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund (hereinafter in this title
called the `Trust Funds')'' and inserting ``the Social Security
Trust Fund (in this title referred to as the `Trust Fund')''.
(2) Continuity of board of trustees.--The Board of Trustees
of the Social Security Trust Fund created by the amendment made
by subsection (a) shall be a continuous body with the Board of
Trustees of the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund in
operation prior to the effective date of such amendment.
Individuals serving as members of the Board of Trustees of the
Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund as of the effective
date of such amendment shall serve the remainder of their term
as members of the Board of Trustees of the Social Security
Trust Fund.
(d) Conforming Amendments Related to Social Security Trust Fund.--
(1) Amendment to section heading.--The section heading for
section 201 of the Social Security Act is amended to read as
follows: ``social security trust fund''.
(2) Board of trustees.--Section 201(c) of such Act, as
amended by subsections (b) and (c)(1), is further amended--
(A) in the matter preceding paragraph (1), by
striking ``Board of Trustees of the Trust Funds'' and
inserting ``Board of Trustees of the Trust Fund'';
(B) in paragraph (1), by striking ``Trust Funds''
and inserting ``Trust Fund'';
(C) in paragraph (2)--
(i) by striking ``Trust Funds'' and
inserting ``Trust Fund''; and
(ii) by striking ``their'' and inserting
``its'';
(D) in paragraph (3), by striking ``either of the
Trust Funds'' and inserting ``the Trust Fund'';
(E) in paragraph (5)--
(i) by striking ``managing the Trust
Funds'' and inserting ``managing the Trust
Fund''; and
(ii) by striking ``Trust Funds are'' and
inserting ``Trust Fund is'';
(F) in the matter following paragraph (5), by
striking ``Trust Funds'' each place it appears and
inserting ``Trust Fund''; and
(G) in the second sentence in the matter following
paragraph (5), by striking ``whether the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund, individually and
collectively, are'' and inserting ``whether the Social
Security Trust Fund is''.
(3) Investments.--Section 201 of such Act is amended in
subsections (d) and (e) by striking ``Trust Funds'' each place
it appears and inserting ``Trust Fund''.
(4) Crediting of interest and proceeds to trust funds.--
Section 201(f) of such Act is amended--
(A) by striking ``the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability
Insurance Trust Fund shall be credited to and form a
part of the Federal Old-Age and Survivors Insurance
Trust Fund and the Disability Insurance Trust Fund,
respectively'' and inserting ``the Social Security
Trust Fund shall be credited to and form a part of the
Social Security Trust Fund'';
(B) by striking ``either of the Trust Funds'' and
inserting ``the Trust Fund''; and
(C) by striking ``such Trust Fund'' and inserting
``the Trust Fund''.
(5) Administrative costs.--Section 201(g) of such Act is
amended--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``Of
the amounts authorized to be made available out
of the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance
Trust Fund under the preceding sentence'' and
all that follows through ``(Public Law 103-
296).'';
(ii) in subparagraph (B)(i)--
(I) by striking subclauses (II) and
(III) and inserting the following:
``(II) the portion of such costs which should have
been borne by the Social Security Trust Fund,''; and
(II) by redesignating subclauses
(IV) and (V) as subclauses (III) and
(IV);
(B) in paragraph (2)--
(i) by striking ``Trust Funds'' and
inserting ``Trust Fund''; and
(ii) by striking the last sentence; and
(C) in paragraph (4), by striking ``Trust Funds''
each place it appears and inserting ``Trust Fund''.
(6) Benefit payments.--Section 201(h) of such Act is
amended to read as follows:
``(h) All benefit payments required to be made under this title
shall be made only from the Social Security Trust Fund.''.
(7) Gifts.--Section 201(i) of such Act is amended--
(A) in paragraph (1), by striking ``the Federal
Old-Age and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund'' and inserting ``the
Social Security Trust Fund''; and
(B) in paragraph (2)(B), by striking ``the Federal
Old-Age and Survivors Insurance Trust Fund'' and
inserting ``the Social Security Trust Fund''.
(8) Travel expenses.--Section 201(j) of such Act is amended
by striking ``the Federal Old-Age and Survivors Insurance Trust
Fund, or the Federal Disability Insurance Trust Fund (as
determined appropriate by the Commissioner of Social
Security)'' and inserting ``the Social Security Trust Fund''.
(9) Demonstration projects.--Section 201(k) of such Act is
amended by striking ``the Federal Disability Insurance Trust
Fund and the Federal Old-Age and Survivors Insurance Trust
Fund, as determined appropriate by the Commissioner of Social
Security'' and inserting ``the Social Security Trust Fund''.
(10) Benefit checks.--Section 201(m) of such Act is
amended--
(A) in paragraph (2), by striking ``each of the
Trust Funds'' and inserting ``the Social Security Trust
Fund'';
(B) in paragraph (3), by striking ``one of the
Trust Funds'' and inserting ``the Trust Fund''; and
(C) by striking ``such Trust Fund'' each place it
appears and inserting ``the Trust Fund''.
(11) Conforming repeals.--
(A) In general.--Section 201 of such Act is amended
by striking subsections (b), (l), and (n).
(B) Redesignations.--Section 201 of such Act is
further amended--
(i) by redesignating subsections (c)
through (j) as subsections (b) through (i),
respectively;
(ii) by redesignating subsection (k) as
subsection (j); and
(iii) by redesignating subsection (m) as
subsection (k).
(C) References to redesignated sections.--
(i) Section 201(a) of such Act, as amended
by subsection (a) of this section, is further
amended--
(I) by striking ``subsection
(i)(1)'' and inserting ``subsection
(h)(1)''; and
(II) by striking ``subsection (d)''
and inserting ``subsection (c)''.
(ii) Section 1131(b)(1) of such Act is
amended by striking ``section 201(g)(1)'' and
inserting ``section 201(f)(1)''.
(e) Other Conforming Amendments to Social Security Act.--
(1) Title ii.--Title II of the Social Security Act (42
U.S.C. 401 et seq.) is amended--
(A) in section 202(x)(3)(B)(iii), by striking ``the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund, as
appropriate,'' and inserting ``the Social Security
Trust Fund'';
(B) in section 206(d)(5), by striking ``the Federal
Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund, as
appropriate'' and inserting ``the Social Security Trust
Fund'';
(C) in section 206(e)(3)(B), by striking ``the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund'' and
inserting ``the Social Security Trust Fund'';
(D) in section 208(b)(5)(A), by striking ``the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund, as
appropriate'' and inserting ``the Social Security Trust
Fund'';
(E) in section 215(i)(1)(F)--
(i) in clause (i)--
(I) by striking ``the combined
balance in the Federal Old-Age and
Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust
Fund'' and inserting ``the balance in
the Social Security Trust Fund''; and
(II) by striking ``and reduced by
the outstanding amount of any loan
(including interest thereon)
theretofore made to either such Fund
from the Federal Hospital Insurance
Trust Fund under section 201(l)''; and
(ii) in clause (ii)--
(I) by striking ``the Federal Old-
Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance
Trust Fund'' and inserting ``the Social
Security Trust Fund''; and
(II) by striking ``(other than
payments'' and all that follows through
``from that Account'';
(F) in section 217(g)(2), by inserting after the
first sentence the following: ``For purposes of any
such revision of the amount determined under paragraph
(1) that occurs in a year after 2015, any reference in
such paragraph to the Federal Old-Age and Survivors
Insurance Trust Fund or the Federal Disability
Insurance Trust Fund shall be deemed to be a reference
to the Social Security Trust Fund.'';
(G) in section 221(e)--
(i) by striking ``Trust Funds'' each place
it appears and inserting ``Trust Fund''; and
(ii) by striking the last sentence;
(H) in section 221(f), by striking ``Trust Funds''
and inserting ``Trust Fund'';
(I) in section 222(d)--
(i) in the section heading, by striking
``Trust Funds'' and inserting ``Trust Fund'';
(ii) in paragraph (1), by striking ``to the
end that savings will accrue to the Trust Funds
as a result of rehabilitating such individuals,
there are authorized to be transferred from the
Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust
Fund'' and inserting ``to the end that savings
will accrue to the Trust Fund as a result of
rehabilitating such individuals, there are
authorized to be transferred from the Social
Security Trust Fund''; and
(iii) by amending paragraph (4) to read as
follows:
``(4) The Commissioner of Social Security shall determine according
to such methods and procedures as the Commissioner may deem appropriate
the total amount to be reimbursed for the cost of services under this
subsection.'';
(J) in section 228(g)--
(i) in the section heading, by striking
``Federal Old-Age and Survivors Insurance Trust
Fund'' and inserting ``Social Security Trust
Fund''; and
(ii) in the matter preceding paragraph (1),
by striking ``Federal Old-Age and Survivors
Insurance Trust Fund'' and inserting ``Social
Security Trust Fund'';
(K) in section 231(c), by striking ``Trust Funds''
each place it appears and inserting ``Trust Fund''; and
(L) in section 234(a)(1), by striking ``Trust
Funds'' and inserting ``Trust Fund''.
(2) Title vii.--Title VII of the Social Security Act (42
U.S.C. 901 et seq.) is amended--
(A) in section 703(j), by striking ``Federal
Disability Insurance Trust Fund, the Federal Old-Age
and Survivors Insurance Trust Fund,'' and inserting
``Social Security Trust Fund'';
(B) in section 708(c), by striking ``the `OASDI
trust fund ratio' under section 201(l),'' after
``computing'';
(C) in section 709--
(i) in subsection (a), by striking
``Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust
Fund'' and inserting ``Social Security Trust
Fund''; and
(ii) in subsection (b)--
(I) in paragraph (1), by striking
``section 201(l) or''; and
(II) in paragraph (2), by striking
``Federal Old-Age and Survivors
Insurance Trust Fund and the Federal
Disability Insurance Trust Fund'' and
inserting ``Social Security Trust
Fund''; and
(D) in section 710--
(i) in subsection (a), by striking
``Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust
Fund'' and inserting ``Social Security Trust
Fund''; and
(ii) in subsection (b)--
(I) by striking ``any Trust Fund
specified in subsection (a)'' and
inserting ``the Social Security Trust
Fund''; and
(II) by striking ``payments from
any such Trust Fund'' and inserting
``payments from the Social Security
Trust Fund''.
(3) Title xi.--Title XI of the Social Security Act (42
U.S.C. 1301 et seq.) is amended--
(A) in section 1106(b), by striking ``the Federal
Old-Age and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund'' and inserting ``the
Social Security Trust Fund'';
(B) in section 1129(e)(2)(A), by striking ``the
Federal Old-Age and Survivors Insurance Trust Fund or
the Federal Disability Insurance Trust Fund, as
determined appropriate by the Secretary'' and inserting
``the Social Security Trust Fund'';
(C) in sections 1131(b)(2) and 1140(c)(2), by
striking ``the Federal Old-Age and Survivors Insurance
Trust Fund'' and inserting ``the Social Security Trust
Fund'';
(D) in section 1145(c)--
(i) by striking paragraphs (1) and (2) and
inserting the following:
``(1) the Social Security Trust Fund;''; and
(ii) by redesignating paragraphs (3) and
(4) as paragraphs (2) and (3), respectively;
and
(E) in section 1148(j)(1)(A)--
(i) in the first sentence, by striking
``the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance
Trust Fund'' and inserting ``the Social
Security Trust Fund''; and
(ii) by striking the second sentence.
(4) Title xviii.--Title XVIII of the Social Security Act
(42 U.S.C. 1395) is amended--
(A) in section 1817(g), by striking ``Federal Old-
Age and Survivors Insurance Trust Fund and from the
Federal Disability Insurance Trust Fund'' and inserting
``Social Security Trust Fund'';
(B) in section 1840(a)(2), by striking ``Federal
Old-Age and Survivors Insurance Trust Fund or the
Federal Disability Insurance Trust Fund'' and inserting
``Social Security Trust Fund''; and
(C) in section 1841(f), by striking ``Federal Old-
Age and Survivors Insurance Trust Fund and from the
Federal Disability Insurance Trust Fund'' and inserting
``Social Security Trust Fund''.
(f) Conforming Amendments Outside of Social Security Act.--
(1) Budget.--
(A) Off-budget exemption.--Section 405(a) of the
Congressional Budget Act of 1974 (2 U.S.C. 655(a)) is
amended by striking ``Federal Old-Age and Survivors
Insurance and Federal Disability Insurance Trust
Funds'' and inserting ``Social Security Trust Fund''.
(B) Sequestration exemption.--Section 255(g)(1)(A)
of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended by
striking ``Payments to Social Security Trust Funds''
and inserting ``Payments to the Social Security Trust
Fund''.
(2) Tax.--
(A) Taxable wages.--Section 3121(l)(4) of the
Internal Revenue Code of 1986 is amended by striking
``Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund'' and
inserting ``Social Security Trust Fund''.
(B) Overpayments.--
(i) Section 6402(d)(3)(C) of the Internal
Revenue Code of 1986 is amended by striking
``Federal Old-Age and Survivors Insurance Trust
Fund or the Federal Disability Insurance Trust
Fund, whichever is certified to the Secretary
as appropriate by the Commissioner of Social
Security'' and inserting ``Social Security
Trust Fund''.
(ii) Subsection (f)(2)(B) of section 3720A
of title 31, United States Code, is amended by
striking ``Federal Old-Age and Survivors
Insurance Trust Fund or the Federal Disability
Insurance Trust Fund, whichever is certified to
the Secretary of the Treasury as appropriate by
the Commissioner of Social Security'' and
inserting ``Social Security Trust Fund''.
(3) False claims penalties.--Subsection (g)(2) of section
3806 of title 31, United States Code, is amended--
(A) in subparagraph (B)--
(i) by striking ``Secretary of Health and
Human Services'' and inserting ``Commissioner
of Social Security''; and
(ii) by striking ``Federal Old-Age and
Survivors Insurance Trust Fund'' and inserting
``Social Security Trust Fund''; and
(B) in subparagraph (C)--
(i) by striking ``Secretary of Health and
Human Services'' and inserting ``Commissioner
of Social Security''; and
(ii) by striking ``Federal Disability
Insurance Trust Fund'' and inserting ``Social
Security Trust Fund''.
(4) Railroad retirement board.--Section 7 of the Railroad
Retirement Act of 1974 (45 U.S.C. 231f) is amended--
(A) in subsection (b)(2), by striking ``Federal
Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund'' and inserting
``Social Security Trust Fund'';
(B) in subsection (c)(2)--
(i) by striking ``Secretary of Health,
Education, and Welfare'' each time it appears
and inserting ``Commissioner of Social
Security''; and
(ii) by striking ``Federal Old-Age and
Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund,'' each time it
appears and inserting ``Social Security Trust
Fund''; and
(C) in subsection (c)(4), by striking ``Federal
Old-Age and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund,'' and inserting
``Social Security Trust Fund''.
(g) Rule of Construction.--Effective beginning on January 1, 2020,
any reference in law to the ``Federal Old-Age and Survivors Insurance
Trust Fund'' or the ``Federal Disability Insurance Trust Fund'' is
deemed to be a reference to the Social Security Trust Fund.
(h) Effective Date.--The amendments made by this section shall take
effect on January 1, 2020.
<all>
Strengthen Social Security by Taxing Dynastic Wealth Act
#1950 | S Congress #116
Policy Area: Taxation
Last Action: Read twice and referred to the Committee on Finance. (6/25/2019)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text