[Congressional Record Volume 141, Number 62 (Tuesday, April 4, 1995)]
[House]
[Page H4163]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                       PRO-SENIOR TAX PROVISIONS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Florida [Mrs. Fowler] is recognized for 5 minutes.
  Mrs. FOWLER. Mr. Speaker, I would like to highlight a number of pro-
senior provisions which are contained in the Tax Fairness and Deficit 
Reduction Act. H.R. 1327 not only reduces the tax burden on American 
families, it repeals the Clinton tax increase in Social Security, 
raises the Social Security earnings test limit, and provides tax 
incentives for the purchase of long-term care insurance.
  The failed notion that Government knows best how to spend people's 
money has given us a Government that is too big, taxes that are too 
high, and a huge debt to lay at the feet of our children. The American 
people have subscribed to a new idea of government--that people and not 
bureaucrats know best how to spend and invest money. They have sent a 
clear message that they do not want Government policies that over-
burden the taxpayer while encouraging dependence on Government support.
  These provisions are in line with the philosophy of smaller 
government and fewer taxes. At the same time, the bill is distinctly 
pro-senior. First, the bill would repeal the tax increase imposed by 
President Clinton's tax package of 1993. It would provide needed relief 
to seniors on fixed incomes, whom the administration labels as 
``wealthy.'' Senior citizens with incomes of more than $34,000 a year 
are not rich. Seniors face escalating costs for housing, medical care, 
and prescription drugs and the Clinton tax increase made it even more 
difficult for many seniors to fend for themselves.
  The repeal of this provision is also important because it scales back 
a very dangerous precedent. The Clinton tax on Social Security actually 
transferred money away from the Social Security trust fund. Revenue 
raised from the increased taxation on Social Security benefits is not 
returned to the Social Security Trust fund. We heard lots of talk from 
opponents of the balanced budget amendment that Republicans were going 
to raid Social Security, but ironically, it is President Clinton who 
has set the standard for raiding the trust fund.
  The Tax Fairness and Deficit Reduction Act will also raise the Social 
Security earnings test limit. The earnings test is a penalty imposed on 
seniors--our most valuable and experienced resource in the work force--
who choose to continue working after they turn 65. Social Security 
recipients earning more than the current limit of $11,280, will have $1 
of benefits reduced for every $3 over the limit. That means that low to 
middle income seniors will face marginal tax rates of 55.65 percent--
when you consider the 15 percent Federal income tax and 7.65 for FICA. 
That is unfair and discriminatory policy that will end under H.R. 1327.
  The current earnings test sends a clear message to seniors: Do not 
work. It will not pay, which is not the message we should be sending.
  Finally, this legislation encourages the purchase of long-term care 
insurance. Too often, senior citizens who have exhausted their 
resources or rely solely on Social Security as a primary source of 
income--perhaps because the earnings test discouraged them from 
continuing to work--must spend down their resources to become eligible 
for long-term care under the Medicaid program. There must be a better 
way, and I believe encouraging the purchase of long-term care insurance 
will allow more seniors to keep their assets and independence from 
Government support.
  Mr. Speaker, these three provisions will greatly benefit seniors, and 
at the same time encourage self-reliance. I look forward to having the 
opportunity to support these changes when we consider H.R. 1327 on the 
House floor this week.


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