[Congressional Record Volume 141, Number 62 (Tuesday, April 4, 1995)]
[House]
[Pages H4149-H4150]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                             PASS H.R. 1215

  The SPEAKER pro tempore. Under a previous order of the House the 
gentlewoman from Florida [Ms. Ros-Lehtinen] is recognized for 5 
minutes.
  Ms. ROS-LEHTINEN. Mr. Speaker, I rise to support an increase in the 
Social Security earnings limit and to ask for the repeal of the Clinton 
tax hike on Social Security benefits. Both are included in H.R. 1215.
  Mr. Speaker, the Social Security earnings limit is an unfair and 
detrimental burden on all senior citizens who find it necessary to 
work. A fixed Social Security income alone, or a planned savings 
program designed to supplement income during retirement, does not in 
any way provide sufficient financial security for senior citizens to 
live in the current world of rising prices. Moreover, and equally 
important, after being accustomed to bring in the work force for 
various decades, retirement leaves many seniors with a feeling of 
worthlessness and a lack of identity, hence there need for employment.
  Unfortunately, Mr. Speaker, instead of repealing the earnings test 
which he once felt was punitive, President Clinton failed to even 
increase the earnings limit. Last year, his Social Security 
Administrator testified that only a $1,000 increase was possible.
  Under current law, senior citizens lose $1 in Social Security 
benefits for every $3 they earn above $11,280.
  The earnings limit translates into an added effective tax of 33 
percent, combined with a 7.65-percent FICA withholding tax, and a 15-
percent Federal income tax. This combines into a preposterous effective 
marginal tax rate of 55.65 percent--twice the tax rate of millionaires. 
This, Mr. Speaker, is outrageous, because it keeps people from working 
and I feel that no one person should be discouraged from working or, 
worse yet, penalized for trying to be financially independent. That is 
why I favor H.R. 1215, which eliminates the bias against older 
Americans who continue to work in order to help themselves and to 
create a better future for all.
  This legislation phases an increase in the earnings limit to $30,000 
by the year 2000 and allows seniors to earn $4,000 more each year.
  An increase in the earnings limit is synonymous with positive 
benefits for senior citizens and for the overall welfare of this 
Nation. An increase in the earnings limit will provide for increased 
economic growth resulting from the wealth of expertise gained from 
seniors who possess decades of workplace experience, not to mention a 
strong work ethic, punctuality, and flexibility. We need the expertise 
and manpower that our seniors provide, in addition to the billions of 
dollars in the annual output of goods and services which their manpower 
renders.
  The implementation of the earnings limit is a complicated procedure 
which requires that seniors produce estimates of their earnings for the 
upcoming year so that the Social Security Administration can reduce 
their checks. Any incorrect estimate, however, translates into a lump 
sum reduction in benefits or, worse yet, increased costs for these 
seniors if they have to employ tax accountants to determine the changes 
in their tax rates.
  As if these limits to earnings were not enough, Mr. Speaker, current 
tax laws serve to place even harsher penalties on America's seniors, 
specifically those who continue to work, be it 
[[Page H4150]] for financial or emotional reasons, beyond the age of 
65. By requiring America's seniors who earn more than $34,000 as 
individuals, or $44,000 as couples, to pay income taxes on 85 percent 
of their Social Security benefits, the 1993 Clinton tax hike on Social 
Security benefits placed a heavier economic burden on millions of 
middle- and low-income senior citizens.
  The bill repeals the Clinton tax hike in a 5-year period. By the year 
2000 the percentage of the tax on Social Security benefits will be 
lowered to 50 percent. This was the amount originally in effect before 
the 1993 tax increase. H.R. 1215 is designed to grant tax fairness for 
millions of American families and, more importantly, for those who have 
made this country what it is today, our elders.
  By increasing the earnings limit seniors can receive, and eliminating 
the 1993 tax hikes to which they are exposed to, this legislation will 
serve to lift the financial burden of our older Americans and will 
grant them a feeling of usefulness and contribution as the continue to 
produce in the workplace.


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