[Congressional Record Volume 167, Number 190 (Thursday, October 28, 2021)]
[Senate]
[Page S7462]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SCOTT of South Carolina (for himself and Mr. Rubio):
  S. 3101. A bill to amend title II of the Social Security Act to 
repeal the retirement earnings test, and for other purposes; to the 
Committee on Finance.
  Mr. SCOTT of Florida. Mr. President, older American workers are a 
vital source of economic strength. Before the pandemic, there were more 
seniors in the workforce than there were 20 years ago, and men and 
women age 55 and older lifted the overall labor force participation 
rate by a substantial margin. During the pandemic, more than 3 million 
seniors retired early, and millions more are considering early 
retirement. These losses harm seniors' retirement security by reducing 
their income and benefits.
  That is why today, with my good friend Senator Rubio, I am 
introducing the Senior Citizens' Freedom to Work Act, which would 
repeal the Social Security retirement earnings test. The earnings test 
is a confusing work disincentive. It says that you lose half your 
Social Security benefits if you earn more than $18,960. Then it gives 
your benefits back at full retirement age. The problem is that many 
seniors know their benefits will be cut if they make too much money, 
but not that they will be replaced later. They treat the earnings test 
like a 50-percent tax and work less to avoid it.
  When I have spoken to small business owners in South Carolina they 
have made clear to me that the earnings test is in fact a disincentive 
for many older workers, and it harms their businesses. Older Americans 
want to earn just enough that they fall right under the threshold so 
their benefits don't get cut, which makes it harder for small 
businesses to hire them even on a part-time basis. It is not surprising 
that research shows the earnings test reduces labor force participation 
by more than 3 percent.
  The earnings test also deepens inequality. It punishes lower-income 
seniors who need Social Security benefits and earned income to get by. 
And if you need Social Security benefits and earned income to meet 
caregiving responsibilities or pressing financial obligations or 
because you have a lower life expectancy, the earnings test says no, 
you have to wait until you reach full retirement age, whether that is 
65 or 67.
  Many seniors just can't wait that long, and the economy can't either. 
The Senior Citizens' Freedom to Work Act will give these older 
Americans the freedom and flexibility they need, promote work, and help 
employers and workers find arrangements that work best for them.
  Thank you.
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