70b 
[DOCID: f:h209ih.txt]






107th CONGRESS
  1st Session
                                H. R. 209

 To amend the Internal Revenue Code of 1986 to provide that tax-exempt 
 interest shall not be taken into account in determining the amount of 
           Social Security benefits included in gross income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2001

 Mr. Sweeney introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide that tax-exempt 
 interest shall not be taken into account in determining the amount of 
           Social Security benefits included in gross income.

    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 ``Seniors Tax Equity Act of 2001''.

SEC. 2. TAX-EXEMPT INTEREST NOT TAKEN INTO ACCOUNT IN DETERMINING 
              TAXATION OF SOCIAL SECURITY BENEFITS.

    (a) In General.--Paragraph (2) of section 86(b) of the Internal 
Revenue Code of 1986 (relating to social security and tier 1 railroad 
retirement benefits) is amended by striking ``gross income--'' and all 
that follows and inserting ``gross income determined without regard to 
this section and sections 135, 137, 221, 911, 931, and 933.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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