State Of New York et al v. Mnuchin et al

Filing 47

DECLARATION of Owen T. Conroy in Support re: 44 CROSS MOTION for Summary Judgment .. Document filed by State Of Connecticut, State Of New York, State of Maryland, State of New Jersey. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54, # 55 Exhibit 55, # 56 Exhibit 56, # 57 Exhibit 57, # 58 Exhibit 58, # 59 Exhibit 59, # 60 Exhibit 60, # 61 Exhibit 61, # 62 Exhibit 62, # 63 Exhibit 63, # 64 Exhibit 64, # 65 Exhibit 65, # 66 Exhibit 66, # 67 Exhibit 67, # 68 Exhibit 68, # 69 Exhibit 69, # 70 Exhibit 70, # 71 Exhibit 71, # 72 Exhibit 72, # 73 Exhibit 73, # 74 Exhibit 74, # 75 Exhibit 75, # 76 Exhibit 76, # 77 Exhibit 77, # 78 Exhibit 78, # 79 Exhibit 79, # 80 Exhibit 80, # 81 Exhibit 81, # 82 Exhibit 82, # 83 Exhibit 83, # 84 Exhibit 84, # 85 Exhibit 85, # 86 Exhibit 86, # 87 Exhibit 87, # 88 Exhibit 88, # 89 Exhibit 89, # 90 Exhibit 90, # 91 Exhibit 91, # 92 Exhibit 92, # 93 Exhibit 93, # 94 Exhibit 94, # 95 Exhibit 95, # 96 Exhibit 96, # 97 Exhibit 97, # 98 Exhibit 98, # 99 Exhibit 99, # 100 Exhibit 100, # 101 Exhibit 101, # 102 Exhibit 102, # 103 Exhibit 103, # 104 Exhibit 104, # 105 Exhibit 105, # 106 Exhibit 106)(Conroy, Owen)

Exhibit 60

PUBLIC LAW 98-21—APR. 20, 1983

97 STAT. 89

"Sec. 3510. Credit for increased social security employee taxes and railroad
retirement tier 1 employee taxes imposed during 1984."
(3) EFFECTIVE DATE.—The amendments made by this subsec-

tion shall apply to remuneration paid during 1984.
(4) DEPOSITS IN SOCIAL SECURITY TRUST FUNDS.—For purposes
of subsection (h) of section 218 of the Social Security Act (relating to deposits in social security trust funds of amounts received
under section 218 agreements), amounts allowed as a credit
pursuant to subsection (d) of section 3510 of the Internal Revenue Code of 1954 (relating to credit for remuneration paid
during 1984 which is covered under an agreement under section
218 of the Social Security Act) shall be treated as amounts
received under such an agreement.
(5) DEPOSITS IN RAILROAD BETIREMENT ACCOUNT.—For purposes
of subsection (a) of section 15 of the Railroad Retirement Act of
1974, amounts allowed as a credit under subsection (e) of section
3510 of the Internal Revenue Code of 1954 shall be treated as
amounts covered into the Treasury under subsection (a) of
section 3201 of such Code.
SEC. 124. TAXES ON SELF-EMPLOYMENT INCOME; CREDIT AGAINST SUCH
TAXES FOR YEARS BEFORE 1990; DEDUCTION OF SUCH TAXES
FOR YEARS AFTER 1989.
(a) INCREASE IN RATES.—Subsections (a) and (b) of section 1401 of

26 use 35io

note

« use 418 note.
42 use 4 is.

Ante, p. 88.

45 use 23in
note
45 use 23in.

the Internal Revenue Code of 1954 (relating to rates of tax on self- 26 use uoi.
employment income) are amended to read as follows:
(a) OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE.—In addition
to other taxes, there shall be imposed for each taxable year, on the
self-employment income of every individual, a tax equal to the
following percent of the amount of the self-employment income for
such taxable year
"In the case of a taxable year
Beginning after:
And before:
December 31,1988
January 1,1988
December SI, 1987
January 1,1990
December 31,1989
HOSPITAL INSURANCE.—In addition

Percent:
11.40
12.12
12.40

"(b)
to the tax imposed by the
preceding subsection, there shall be imposed for each taxable year,
on the self-employment income of every individual, a tax equal to
the following percent of the amount of the self-employment income
for such taxable year:
"In the case of a taxable year
Beginning after:
And before:
Percent:
December 81,1983
January 1,1986
2.60
December 31,1984January 1,1986
2.70
December 31,1985
2.90."
(b) CREDIT FOR TEARS BEFORE 1990 AGAINST SELF-EMPLOYMENT
TAXES.—Section 1401 of such Code is amended by redesignating

subsection (c) as subsection (d) and by inserting after subsection (b)
the following new subsection:
"(c) CREDIT AGAINST TAXES IMPOSED BY THIS SECTION.—
"(1) IN GENERAL.—In the case of a taxable year beginning
before 1990, there shall be allowed as a credit against the taxes
imposed by this section for any taxable year an amount equal to

97 STAT. 90

PUBLIC LAW 98-21—APR. 20, 1983
the applicable percentage of the self-employment income of the
individual for such taxable year.
"(2) APPLICABLE PERCENTAGE.—For purposes of paragraph (1),
the applicable percentage shall be determined in accordance
with the following table:

26 use 164.

26 use 1402.

42 use 4ii.

Supra.

"In the caae of taxable
The applicable
yearn beginning in:
percentage IK
1984
2.7
1985
2.3
1986,1987,1988, or 1989
2.0."
(c) ALLOWANCE OF DEDUCTION FOR YEARS AFTER 1989 FOR ONEHALF OF TAXES ON SELF-EMPLOYMENT INCOME.—
(i) iN GENERAL.—Section 164 of such Code (relating to deduc-

tion for taxes) is amended by redesignating subsection (f) as
subsection (g) and by inserting after subsection (e) the following
new subsection:
"(f) DEDUCTION FOR ONE-HALF OF SELF-EMPLOYMENT TAXES.—
"(1) IN GENERAL.—In the case of an individual, in addition to
the taxes described in subsection (a), there shall be allowed as a
deduction for the taxable year an amount equal to one-half of
the taxes imposed by section 1401 for such taxable year.
"(2) DEDUCTION TREATED AS ATTRIBUTABLE TO TRADE OR BUSINESS.—For purposes of this chapter, the deduction allowed by
paragraph (1) shall be treated as attributable to a trade or
business carried on by the taxpayer which does not consist of
the performance of services by the taxpayer as an employee."
(2) ALTERNATIVE DEDUCTION ALLOWED IN COMPUTING SELF-EMPLOYMENT TAXES.—Subsection (a) of section 1402 of such Code
(defining net earnings from self-employment) is amended by
striking out "and" at the end of paragraph (11), by redesignating paragraph (12) as paragraph (13), and by inserting
after paragraph (11) the following new paragraph:
"(12) in lieu of the deduction provided by section 164(f) (relating to deduction for one-half of self-employment taxes), there
shall be allowed a deduction equal to the product of—
"(A) the taxpayer's net earnings from self-employment
for the taxable year (determined without regard to this
paragraph), and
"(B) one-half of the sum of the rates imposed by subsections (a) and (b) of section 1401 for such year; and".
(3) CONFORMING AMENDMENT TO SOCIAL SECURITY ACT.—Subsection (a) of section 211 of the Social Security Act is amended
by striking out "and" at the end of paragraph (10), by redesignating paragraph (11) as paragraph (12), and by inserting
after paragraph (10) the following new paragraph:
"(11) In lieu of the deduction provided by section 164(f) of the
Internal Revenue Code of 1954 (relating to deduction for onehalf of self-employment taxes), there shall be allowed a deduction equal to the product of—
(A) the taxpayer's net earnings from self-employment
for the taxable year (determined without regard to this
paragraph), and
"(B) one-half of the sum of the rates imposed by subsections (a) and (b) of section 1401 of such Code for such year;
and".
(4) SECTION 164(F) DEDUCTION TAKEN INTO ACCOUNT IN COMPUTING EARNED INCOME.—

PUBLIC LAW 98-21—APR. 20, 1983

97 STAT. 91

(A) Subparagraph (A) of section 401(cX2) of such Code & sut. sia.
(defining earned income) is amended by striking out "and" 26 usc 40L
at the end of clause (iv), by striking out the period at the
end of clause (v) and inserting in lieu thereof ", and", and
by inserting after clause (v) the following new clause:
"(vi) with regard to the deduction allowed to the A
taxpayer by section 164(f)."
^te, p. 90.
(B) Clause (ii) of section 43(cX2XA) of such Code is 26 use 43.
amended by inserting before the period ", but such net
earnings shall be determined with regard to the deduction
allowed to the taxpayer by section 164(f)".
(5) CONFORMING AMENDMENT.—Subsection (a) of section 275 of 26 use 275.
such Code (relating to denial of deduction for certain taxes) is
amended by adding at the end thereof the following new sentence:
"Paragraph (1) shall not apply to any taxes to the extent such taxes
are allowable as a deduction under section 164(f)."
(d) EFFECTIVE DATES—
26 usc uoi
(1) IN GENERAL.—Except as provided in paragraph (2), the noteamendments made by this section shall apply to taxable years
beginning after December 31,1983.
(2) SUBSECTION <c).—The amendments made by subsection (c)
shall apply to taxable years beginning after December 31,1989.
SEC. 125. TREATMENT OF CERTAIN FACULTY PRACTICE PLANS.

26 USC 3121

(a) GENERAL RULE.—For purposes of subsection (s) of section 3121
of the Internal Revenue Code of 1954 (relating to concurrent employment by 2 or more employers)—
(1) the following entities shall be deemed to be related corporations:
(A) a State university which employs health professionals
as faculty members at a medical school, and
(B) a faculty practice plan described in section 501(cX3) of
such Code and exempt from tax under section 501(a) of such
Code—
(i) which employs faculty members of such medical
school, and
(ii) 30 percent or more of the employees of which are
concurrently employed by such medical school; and
(2) remuneration which is disbursed by such faculty practice
plan to a health professional employed by both such entities
shall be deemed to have been actually disbursed by such university as a common paymaster and not to have been actually
disbursed by such faculty practice plan.
(b) EFFECTIVE DATE.—The provisions of subsection (a) shall apply
to remuneration paid after December 31,1983.
ALLOCATIONS TO DISABILITY INSURANCE TRUST FUND

SEC. 126. (a) Section 201(bXD of the Social Security Act is amended 42 use 401.
by striking out clauses (K) through (M) and inserting in lieu thereof
the following: "(K) 1.65 per centum of the wages (as so defined) paid
after December 31, 1981, and before January 1, 1983, and so
reported, (L) 1.25 per centum of the wages (as so defined) paid after
December 31,1982, and before January 1,1984, and so reported, (M)
1.00 per centum of the wages (as so defined) paid after December 31,
1983, and before January 1, 1988, and so reported, (N) 1.06 per