[Congressional Record Volume 146, Number 47 (Thursday, April 13, 2000)]
[Senate]
[Pages S2706-S2707]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SECTION 415 PENSION REFORM NEEDED
Mr. GORTON. Mr. President, during this week prior to the April
deadline for filing income tax returns with the Internal Revenue
Service, Congress often focuses on the high tax burden shouldered by
American families and the need for tax reform. Fundamental reform is my
top tax legislative priority. I believe the entire confusing and
incomprehensible tax code should be scrapped and replaced with a system
that is fair, simple, uniform and consistent. Until such fundamental
reform can take place, I will continue to work in support of tax reform
measures that correct unfair aspects of the existing tax code mess.
One section of the code that I believe needs to be changed and
changed soon is Section 415. Section 415 of the tax code was enacted in
1974 for the purpose of limiting the pensions of corporate executives.
Section 415 no
[[Page S2707]]
longer impacts corporate executives, but it does unfairly impact middle
income workers who are prevented from collecting the full pensions they
earned and deserve from their multi-employer plan. This is as simple as
the tax code keeping workers from being able to collect their own
money. I believe this injustice should be corrected, and I have
cosponsored legislation, Senate bill 1209, that will restore fairness
to this section of the tax code.
The Senate version of the 1999 tax relief bill included the fix to
Section 415. I am pleased that the Senate joined me in recognizing the
absolute need to correct Section 415 and to stop unfairly punishing
workers by blocking access to their hard-earned pensions, though I am
disappointed that this change did not become law last year. It was,
however, an important step towards achieving reform. As the nation
focuses on tax season, I reaffirm my dedication to fighting to pass
legislation to bring fairness to Section 415 of the tax code and ensure
our nation's workers collect what they have rightfully earned.
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