Tom Harkin: “the Senate is going to take an important and long overdue step to stop penalizing older workers in our Nation…”

“the Senate is going to take an important and long overdue step to stop penalizing older workers in our Nation-- eliminating the Social Security earnings penalty. This is a change I have advocated for many years. So I am very pleased we are taking this important step. This legislation, H.R. 5, is an important step for a number of reasons. First, it is simply the right thing to do. There should not be a penalty for working. Second, we are now facing and will continue to face tight labor markets. In my State of Iowa, this is an acute problem in some areas. By eliminating the earnings penalty, experienced workers who were discouraged from continuing in or rejoining the work force will have a new incentive to work. The emergence of the Internet and home computers offers tremendous opportunities for seniors to work at home. Marrying these new job opportunities with a repeal of the earnings penalty will become even more important as the Baby Boomers retire. Third, a large number of older Americans need the income. Over half of today's workers have no pension plans outside of Social Security. They are going to need additional sources of income to maintain their standard of living. Some critics have expressed concern that this change would have a negative budgetary impact. I believe that by attracting more Americans back into the work force, either on a full-time or part-time basis, it will strengthen Social Security and the federal budget.”