An act to amend the Internal Revenue Code of 1954 to reduce the rate of certain taxes paid to the Virgin Islands on Virgin Islands source income, to amend the Social Security Act to provide for a temporary period that payment of disability benefits may continue through the hearing stage of the appeals process, and for other purposes.

(Conference report filed in House, H. Rept. 97-985) Amends the Internal Revenue Code to limit to ten percent the income tax rate on Virgin Islands source income and provide for corresponding changes in tax withholding. Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to permit an individual who has been found to be no longer eligible for disability benefits and who has requested a hearing with respect to such determination to elect to have the payment of such benefits continued during the administrative appeals process, through June 1984. Provides that if the decision after the hearing affirms the determination that the individual is not entitled to such benefits, any benefits paid pending the hearing shall be considered overpayments. Limits the above provisions to determinations of ineligibility made before October, 1983. Makes the requirement that disability determinations under title II be reviewed at least every three years applicable only to the extent that sufficient personnel and processing time are available. Requires the Secretary of Health and Human Services to determine the number of cases which may be adequately reviewed by the applicable State agency or by the Secretary. Requires the Secretary to report annually to specified Congressional committees with respect to such determinations. Requires evidentiary hearings accessible to the disabled individual in reconsiderations of disability benefit terminations. States that this requirement shall become effective no later than 1984. Directs the Secretary to take the necessary steps to assure public understanding of the importance Congress places on face-to-face reconsiderations. Requires the Secretary to develop procedures for the conduct of such reconsiderations and to advise beneficiaries of the importance of submitting all evidence. Directs the Secretary to report semiannually to specified Congressional committees on the number and results of continuing disability reviews. Amends the Social Security Amendments of 1977 to revise provisions for the reduction of spousal security benefits by a certain percent of the amount received as a public pension. Provides that such offset shall not apply to dependent spouses who become eligible for a public pension prior to July 1983. Requires the Secretary to study the pension offset provisions and make legislative recomendations to Congress by May 15, 1983.

(House agreed to Senate amendment with an amendment) Amends the Internal Revenue Code to reduce to ten percent the income tax rate on Virgin Islands source income and provide for corresponding reductions in tax withholding. Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to permit an individual who has been found to be no longer eligible for disability benefits and who has requested a hearing with respect to such determination to elect to have the payment of such benefits continued during the administrative appeals process, through June 1984. Provides that if the decision after the hearing affirms the determination that the individual is not entitled to such benefits, any benefits paid pending the hearing shall be considered overpayments. Limits the above provisions to determinations of ineligibility made before October, 1983. Makes the requirement that disability determinations under title II be reviewed at least every three years applicable only to the extent that sufficient personnel and processing time are available. Requires the Secretary of Health and Human Services to determine the number of cases which may be adequately reviewed by the applicable State agency or by the Secretary. Requires the Secretary to report annually to specified Congressional committees with respect to such determinations. Requires evidentiary hearings accessible to the disabled individual in reconsiderations of disability benefit terminations. States that this requirement shall become effective no later than 1984. Directs the Secretary to take the necessary steps to assure public understanding of the importance Congress places on face-to-face reconsiderations. Requires the Secretary to develop procedures for the conduct of such reconsiderations and to advise beneficiaries of the importance of submitting all evidence. Directs the Secretary to report semiannually to specified Congressional committees on the number and results of continuing disability reviews. Provides for the reduction of the spousal social security benefit by a certain percent of the amount received as a public pension.

(Measure passed Senate, amended, roll call #394 (70-4)) Amends the Internal Revenue Code to reduce to ten percent the income tax rate on Virgin Islands source income and provide for corresponding reductions in tax withholding. Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to permit an individual who has been found to be no longer eligible for disability benefits and who has requested a hearing with respect to such determination to elect to have the payment of such benefits continued during the administrative appeals process, through June 1984. Provides that if the decision after the hearing affirms the determination that the individual is not entitled to such benefits, any benefits paid pending the hearing shall be considered overpayments. Limits the above provisions to determinations of ineligibility made before October, 1983. Makes the requirement that disability determinations under title II be reviewed at least every three years applicable only to the extent that sufficient personnel and processing time are available. Requires the Secretary of Health and Human Services to determine the number of cases which may be adequately reviewed by the applicable State agency or by the Secretary. Requires the Secretary to make every reasonable effort to obtain all relevant medical evidence from all persons or institutions treating an individual during the preceding 12 months when conducting a medical review of the individual's continuing disability. Requires the Secretary to consider all evidence in the individual's file and to discuss such evidence in the statement of the case filed with a denial notice. Requires the Secretary to transmit to Congress semiannual reports on: (1) the number of initial benefit termination decisions resulting from medical reviews; and (2) the number of benefit termination decisions which are overturned at the hearing level.

(Reported to Senate from the Committee on Finance with amendment, S. Rept. 97-648) Amends the Internal Revenue Code to reduce to ten percent the income tax rate on Virgin Islands source income and provide for corresponding reductions in tax withholding. Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to permit an individual who has been found to be no longer eligible for disability benefits and who has requested a hearing with respect to such determination to elect to have the payment of such benefits continued during the administrative appeals process. Provides that if the decision after the hearing affirms the determination that the individual is not entitled to such benefits, any benefits paid pending the hearing shall be considered overpayments. Makes the requirement that disability determinations under title II be reviewed at least every three years applicable only to the extent that sufficient personnel and processing time are available. Requires the Secretary of Health and Human Services to determine the number of cases which may be adequately reviewed by the applicable State agency or by the Secretary. Requires the Secretary to make every reasonable effort to obtain all relevant medical evidence from all persons or institutions treating an individual during the preceding 12 months when conducting a medical review of the individual's continuing disability. Requires the Secretary to transmit to Congress semiannual reports on: (1) the number of initial benefit termination decisions resulting from medical reviews; and (2) the number of benefit termination decisions which are overturned at the hearing level.

Amends the Internal Revenue Code to reduce to ten percent the income tax rate on Virgin Islands source income and provide for corresponding reductions in tax withholding.