[Congressional Record (Bound Edition), Volume 147 (2001), Part 2]
[Senate]
[Page 1613]
[From the U.S. Government Publishing Office, www.gpo.gov]



            THE SOCIAL SECURITY BENEFITS TAX RELIEF ACT 2001

  Mr. HUTCHINSON. Mr. President, last week I introduced legislation 
which I hope is the first of several steps taken by Congress to correct 
a terrible injustice currently imposed on seniors who have worked hard 
all of their lives and are receiving Social Security benefits.
  Many people do not realize that, after they have paid Social Security 
taxes throughout their work careers, up to 50 percent or 85 percent of 
the monthly benefit they receive from Social Security may be taxed 
again.
  Prior to 1993, up to 50 percent of Social Security benefits were 
taxable for individuals with incomes above $25,000, and couples with 
incomes above $32,000. In 1993, after President Clinton raised the 
portion of Social Security benefits which are taxable up to 85 percent 
for individuals with incomes over $34,000, and couples with income over 
$44,000.
  President Clinton's 1993 tax increase on senior citizens made a bad 
policy even worse. Essentially, this graduated tax scheme penalizes 
seniors with fixed incomes who have worked hard to ensure their 
retirement security.
  S. 237, the Social Security Benefits Tax Relief Act, which I have 
introduced along with my colleagues, Senators Cochran, Frist, Inhofe, 
Lott, Murkowski and Warner, would repeal the 1993 Clinton tax increase 
on Social Security benefits and rolls the tax levels back to their pre-
1993 levels.
  By eliminating the taxation of Social Security benefits, we will 
allow seniors to have more money to pay for prescription drugs, medical 
care, housing and food. This legislation provides greater tax fairness 
for increasing numbers of middle-income seniors.
  It is widely agreed that Social Security was never intended to be the 
sole source of income for retirees. In light of Social Security's 
financial troubles, now is the time to remove disincentives for those 
who wish to save and plan early for their retirement. Hopefully, this 
legislation is a first step toward the repeal of all taxes on Social 
Security benefits.
  I urge my colleagues in the Senate to provide tax relief to seniors 
by passing this important legislation and by examining ways to make the 
system as fair as possible for all beneficiaries who have paid into the 
system and who may or may not be subject to taxes on their benefits.

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