Ben Cardin: “Mr. Speaker, as has been pointed out, last year almost 800,000 seniors had their social security benefits reduced…”

“Mr. Speaker, as has been pointed out, last year almost 800,000 seniors had their social security benefits reduced because of this earnings test. Next year, over 600,000 seniors will be forced to defer their benefits because they had earnings over $17,000. Today we are passing a commonsense change that allows seniors to be able to earn, be able to continue to work, and be able to collect their social security checks. As the gentleman from Texas (Mr. Sam Johnson) pointed out, it will have no effect on the long-term solvency of social security. For the first time, we allow seniors to continue to earn a paycheck without taking it out of their social security check. Seniors who want to continue working should be able to stay in the labor force without losing their hard-earned social security benefits. At a time with a tight labor market and historically low personal savings, it does not make sense to discourage our most experienced workers from staying productive. Yet, the earnings penalty amounts to a 33 percent marginal tax rate on work. This change will particularly help women workers, who have historically had lower earnings and an uneven work history.”