[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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