[Congressional Record Volume 142, Number 46 (Friday, March 29, 1996)]
[Senate]
[Page S3237]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     SOCIAL SECURITY EARNINGS TEST

 Mr. SMITH. Mr. President, last night, the Senate passed the 
``Contract With America Advancement Act.'' I rise to speak to one 
provision of that legislation, which I believe is a significant 
achievement for senior citizens. That is the ``Senior Citizens' Right 
to Work Act of 1996.'' This legislation raises the Social Security 
earnings limit to $30,000 by the year 2002, more than double what it 
would be under current law.
  Every year, the earnings limitation test takes $1 of every $3 that 
Social Security beneficiaries 65 to 69 years old earn above $11,280. I 
hear from hundreds of senior citizens every year complaining that this 
test is unfair. And they are correct. In fact, the earnings test 
affects an estimated 1.4 million beneficiaries each year.
  More importantly, Mr. President, the earnings test flies right smack 
in the fact of the most basic principles we teach our kids in grade 
school economics. Specifically: no work, no pay. Can you imagine trying 
to explain a system that pays people not to work? Well, that is what 
our Social Security system does with the earnings test.
  You might argue that our welfare system has similar disincentives, 
and you would be absolutely right. The Republican Congress is trying to 
fix that. If only we could overcome the little obstacle of President 
Clinton's veto pen, we would be well on our way to real welfare reform.
  But, the earnings test takes this perverse concept one step further. 
And this is where we really get into the fairness issue. It says that 
if you are wealthy and you get your income through interest or 
dividends, you get full benefits. But, if you are poor and need to work 
to supplement your income, you get penalized. Seniors have been waiting 
a long time for this reform. It was in the Contract With America, and 
it is a part of the Republican Party Platform. I am pleased that we are 
about to make good on our promise to America's seniors.

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