[Congressional Record Volume 145, Number 164 (Thursday, November 18, 1999)]
[Extensions of Remarks]
[Page E2437]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF TWO BILLS TO REDUCE TAXES ON SOCIAL SECURITY BENEFITS

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                          HON. JERROLD NADLER

                              of new york

                    in the house of representatives

                      Wednesday, November 17, 1999

  Mr. NADLER. Mr. Speaker, I rise today to join with Representative 
Nita Lowey to announce the introduction of two bills to reduce taxes on 
Social Security benefits. The first bill would repeal the 1993 tax 
increase on Social Security benefits. I have always opposed this 
provision, and I believe that it is now time to repeal this tax on our 
Nation's seniors.
  The 1993 economic plan imposed additional taxation on the benefits of 
single social security recipients with incomes over $34,000, and on 
married recipients with joint incomes over $44,000 by including, in 
each case, 85 percent of Social Security benefits in taxable income. At 
the time, proponents of the tax increase said it was necessary to 
reduce to deficit. Remember the atrocious national debt had risen from 
$800 billion in 1981 to more than $4 trillion in 1993. The annual 
deficit, which was almost $300 billion a year in 1992, was projected to 
increase to $500 billion a year later in the decade. We passed a tough 
economic plan, the economy improved, and the deficit was eliminated.
  I believed it was unfair to tax seniors on their social security 
benefits to reduce the deficit, and, therefore, I joined with 
Representative Nita Lowey in offering a bill which would have repealed 
the provision immediately and taken other steps to reduce the deficit. 
We demonstrated that you could still reduce the deficit without 
increasing taxes on social security benefits. Now that 6 years have 
passed and the deficit has been transformed into a surplus, it is more 
important than ever that we abolish this unnecessary tax on seniors. 
So, again, I am joining with Representative Nita Lowey to abolish this 
unfair tax on social security benefits. I urge my colleagues to support 
this bill and work toward its swift passage.
  Mr. Speaker, if we are unable to implement this bill quickly, then 
the very least we should do is adjust the 1993 income threshold to take 
into account the rise in the cost of living. That is why I am also 
announcing the introduction of another tax relief bill for our seniors, 
which should be implemented immediately. Again, I am proud to work with 
Representative Nita Lowey to advance this effort.
  This bill would ensure that we do not inadvertently tax more and more 
seniors with relatively less income every year. Under current law, the 
income levels that were set in 1993 were not adjusted for cost of 
living increases. As a result, more and more people are having their 
social security benefits taxes. This is unfair and unnecessary. So, 
this second bill would require the 1993 level to be adjusted on an 
annual basis to take account for the rise in the cost of living. I am 
hopeful that we can build strong bipartisan support for this 
legislation and work together to ease the tax burden on our Nation's 
seniors. I urge all of my colleagues to support these two tax cut 
measures.

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