[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          THE SOCIAL SECURITY DOMESTIC EMPLOYMENT ACT OF 1994

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                               speech of

                         HON. DAN ROSTENKOWSKI

                              of illinois

                    in the house of representatives

                       Thursday, October 6, 1994

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill, H.R. 4278, the 
     Social Security Domestic Employment Act of 1994.

  Mr. ROSTENKOWSKI. Mr. Chairman, I rise in strong support of this 
conference agreement to simplify and streamline the payment of Social 
Security payroll taxes on domestic workers for the first time since 
1950.
  It will increase the number of employers who comply with the law, and 
it will assure that more workers will receive much-needed protection 
under Social Security.
  No one ever intended that Americans be required to pay taxes on 
occasional babysitters or yard workers. But, that is what has happened 
over time.
  This bill will take care of that problem by exempting this type of 
occasional work from Social Security taxes. At the same time, it will 
protect full-time nannies, housekeepers and other domestic workers by 
assuring that they receive Social Security coverage.
  Second, the bill will reduce paperwork for employers by permitting 
them to file their employment taxes on their own annual 1040 income tax 
forms.
  The agreement also assures the short-term solvency of the disability 
insurance trust fund by following the recommendation of the Social 
Security trustees and allocating a small portion of the existing Social 
Security payroll tax into that fund.
  Without it, the disability insurance fund would become insolvent in 
1995.
  The House acted responsibly in 1993 and passed both these provisions 
as part of the budget agreement. But, we were forced by the Senate to 
drop the provisions from that conference.
  It is time for us to fix these problems.
  I strongly support this agreement.

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