[Congressional Record (Bound Edition), Volume 145 (1999), Part 3]
[Extensions of Remarks]
[Page 4157]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 4157]]

             CONGRESSIONAL RECORD 

                United States
                 of America



March 10, 1999






                          EXTENSIONS OF REMARKS

       INTRODUCTION OF THE SENIOR CITIZENS' FREEDOM TO WORK BILL

                                 ______
                                 

                            HON. SAM JOHNSON

                                of texas

                    in the house of representatives

                       Wednesday, March 10, 1999

  Mr. SAM JOHNSON of Texas. Mr. Speaker, on March 1, Collin Peterson of 
Minnesota and I introduced H.R. 5, the ``Senior Citizens' Freedom to 
Work Act of 1999.'' This legislation will eliminate the so-called 
Social Security ``earnings limit.'' Under current law, our senior 
citizens aged 65-69 can earn $15,500 before they lose $1 in Social 
Security benefits for each additional $3 of earnings. This limit is 
unfair, discriminatory, and adversely effects our country's economy. 
The Social Security earnings limit must be eliminated.
  The Social Security earnings limit is unfair and inappropriate 
because it imposes a ``means'' test for a retirement benefit. As we all 
know, our seniors have earned Social Security benefits through a 
lifetime of contributions to the program and they should not be 
penalized because they choose to work. We have a fundamental right to 
work in America and earn money without government intrusion.
  Additionally, the Social Security earnings limit discriminates 
against senior citizens who must work in order to supplement their 
benefits and is unfair to our nation's senior citizens who have the 
greatest need for additional income.
  It is a Depression-era law whose time has long since come and gone. 
In the 1930's, the earnings limit was used to force seniors out of the 
workforce. Today, with unemployment at record lows, seniors are needed 
in the workforce.
  The disincentive effect is magnified when viewed on an after-tax 
basis. Senior citizens who work lose a large percentage of their Social 
Security benefits due to the Social Security earnings limit, but they 
must also continue to pay Social Security taxes, and probably federal 
and state income taxes as well. The Social Security earnings limit 
forces seniors to avoid work or seek lower-paying or part-time work.
  In addition to being complicated and difficult for the individual 
senior citizen to understand, the Social Security earnings limit is 
complex and costly for the federal government to administer. For 
example, the test is responsible for more than one-half of retirement 
and survivor program overpayments. Elimination of the earnings limit 
would help minimize administration expenses, and recipients would be 
less confused.
  Finally, repealing the Social Security earnings limit would aid our 
country's economy. Our senior citizens would be likely to work more and 
the American economy would benefit from their experience and skills. 
The combined increase in the amounts that they would pay in Social 
Security and other taxes, as well as the additional contribution to our 
Gross National Product, would largely offset the increase in benefit 
payments. For decades, our senior citizens worked and dutifully paid 
their Social Security taxes; it is only fair that they receive all of 
the Social Security benefits when they are at the retirement age.
  I fought for freedom in two wars and I believe that freedom entitles 
our seniors the ability to work without a penalty. America's seniors 
want, need and deserve the repeal of the Social Security earnings 
limit.

                          ____________________