[Congressional Record Volume 151, Number 43 (Wednesday, April 13, 2005)]
[Senate]
[Page S3562]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BUNNING:
  S. 774. A bill to amend the Internal Revenue Code of 1986 to repeal 
the 1993 income tax increase on Social Security benefits; to the 
Committee on Finance.
  Mr. BUNNING. Mr. President, today, I am introducing the Social 
Security Benefits Tax Relief Act of 2005, which repeals the 1993 income 
tax increase on Social Security benefits that went into effect in 1993.
  When Social Security was created, beneficiaries did not pay federal 
income tax on their benefits. However, in 1983, Congress passed 
legislation requiring that 50 percent of Social Security benefits be 
taxed for seniors whose incomes were above $25,000 for an individual 
and $32,000 for a couple. This additional revenue was credited back to 
the Social Security trust funds.
  In 1993, Congress and President Clinton expanded this tax. A 
provision was passed as part of a larger bill requiring that 85 percent 
of a senior's Social Security benefit be taxed if their income was 
above $34,000 for an individual and $44,000 for a couple. This 
additional money is credited to the Medicare program.
  I was in Congress in 1993, and fought against this provision. This is 
an unfair tax on our senior citizens who worked year after year paying 
into Social Security, only to be taxed on their benefits once they 
retired.
  My bill, the Social Security Benefits Tax Relief Act, would repeal 
the 1993 tax increase on benefits and would replace the money that has 
been going to the Medicare program with general funds. This legislation 
is identical to the legislation I introduced in the 108th Congress.
  Recently during debate on the Budget Resolution, I introduced an 
amendment that provides the Finance Committee with the tax cuts to 
finally repeal the 1993 tax increase on Social Security benefits. My 
amendment passed by a vote of 55 yeas to 45 nays. The legislation I am 
introducing today provides the legislative blueprint for repealing this 
unfair tax.
  The 1993 tax was unfair when it was signed into law, and it is unfair 
today. I hope my Senate colleagues can support this legislation to 
remove this burdensome tax on our seniors.
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