[Congressional Record (Bound Edition), Volume 149 (2003), Part 8]
[Extensions of Remarks]
[Page 11136]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     SENIOR CITIZENS NEED OUR HELP

                                 ______
                                 

                            HON. BOB FILNER

                             of california

                    in the house of representatives

                         Thursday, May 8, 2003

  Mr. FILNER. Mr. Speaker and colleagues, I rise today to urge support 
for two bills that I have just introduced to provide financial relief 
to our Nation's senior citizens. Both men and women will receive 
assistance with this legislation, but because older women are often 
with less financial resources, they will particularly benefit.
  My first bill is H.R. 1922, the Fair Taxes for Seniors Act. This bill 
would provide a one-time increase in the capital gains tax exemption on 
the sale of a home for citizens who are 50 or older. Passing this bill 
would give many seniors the additional money they need for nursing home 
care, medical costs, and other retirement expenses.
  The current capital gains tax exemption works well for younger people 
who often move from job to job, selling their homes. The current 
exemption works well for people who live in areas where housing prices 
are below average. But it is not working for individuals who have lived 
in one home for 20 to 50 years and have a capital gain that is much 
larger than the present exemption. In other words, it is not working 
for seniors who live in areas with higher housing prices.
  A senior citizen named Eleanor lives in Glen Ellyn, IL and bought her 
home with her husband 45 years ago. The value of her home at the time 
of her husband's death was $32,000. Eleanor is now 78 years old and 
needs to move into a nursing care facility. Her house is worth 
$579,000, and the combined Federal and State taxes after the current 
capital gains exemption are $68,000. Her only income is from Social 
Security and a small pension, and she needs the money from the sale of 
her house in order to move into the nursing home. Eleanor would like to 
stay in the Chicago area because her friends are there, but the price 
of nursing care is high there as well. Should a 78-year-old woman have 
to move away from the city where she has lived all her life because, as 
a widow, she is considered single and has to pay higher taxes? The tax 
of $68,000 is money she should be able to use for medicine, living 
expenses, and her nursing home.
  Marilyn is a single, professional woman who lives in Mission Hills, 
CA--near my Congressional District. She purchased her home over 30 
years ago for $65,000. She chose to become involved in her community 
and has stayed in the same house throughout her lifetime. Marilyn is 
now 60 years old and would like to sell her home and move to a smaller 
condo in the same area. The selling price of her home is now $895,000, 
and her combined Federal and State taxes are $169,940 after the current 
exemption. Should singles who remain in one house for many years be 
taxed for their stability and their long-term commitment to their 
community--and essentially for being single? A one-time exemption on 
capital gains would allow Marilyn to downsize her life for her 
retirement years in a way that is financially sensible.
  Sally, a divorced, single mother in Seattle, WA is 57 years old. She 
chose to stay in one home for 37 years so her children could stay in 
the same school system, and so she could live near her work and her 
church. One of her adult children has developed severe health problems 
and has had to pay medical bills not covered by insurance. Sally needs 
to help with these medical expenses and has decided to sell her home to 
pay some of the doctor's bills. Her home that she purchased for $55,000 
is now worth $629,000, and the combined Federal and State taxes are 
$64,000. This tax money is money that Sally should be able to use to 
pay off medical bills as well as to get ready for her own retirement.
  My bill would provide a one-time increase of $500,000 for a single 
person and $1 million for a couple in the amount excludable from the 
sale of a principal residence for taxpayers who have reached the age of 
50. Let us help our citizens over age 50 who have lived in one home for 
many years. Let them keep the proceeds from the sale of their homes for 
retirement and health care costs. An added benefit is that family 
members and perhaps the government will be relieved of the burden of 
caring for these individuals as they grow older.
  My second bill is H.R. 1923, the Social Security Survivors Fairness 
Act, legislation to provide Social Security widows' benefits for women 
under the age of 60. Maria is a 58-year-old widow who lives in San 
Ysidro, CA in my Congressional District. Throughout her lifetime, she 
worked in the home, raising her children and supporting her husband. 
Now her husband, who received Social Security benefits, has passed 
away. There currently is a provision for Maria to receive Social 
Security widows' benefits, but to qualify she must be 60 years old.
  Social Security is telling Maria that she must find a way to support 
herself for 2 years before they are going to help with widows' 
benefits. It will be very difficult for her to find a job at her age, 
when she has never worked outside of her home. Women in their late 50s 
who are dependent on their husband's Social Security are left with no 
means of support if their spouse dies.
  My bill would amend the Social Security Act to reduce from 60 to 55 
the age at which an individual who is otherwise eligible may be paid 
widows' or widowers' insurance benefits.
  I encourage my colleagues to support H.R. 1922 and H.R. 1923 to 
provide financial assistance to our country's most vulnerable citizens.

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