Rod Grams: “I rise to strongly support HR 5, the Senior Citizens' Freedom to Work Act. This very important legislation would help…”

“I rise to strongly support HR 5, the Senior Citizens' Freedom to Work Act. This very important legislation would help millions of American seniors who choose to, or must work after retirement. Under current law, the Social Security benefits of those seniors ages 65 though 69 who continue to work will be reduced by $1 for each $3 of earnings over $17,000. In other words, they will be taxed at 33.3 percent of their earnings above the threshold. However, the onerous tax burden on our seniors does not stop there. These seniors are also subject to a 15.3 percent payroll tax, and a 15 percent income tax. Combined with the earnings test, these seniors are paying taxes of over 60 percent on their earnings from working. If their earnings bump up their income, their Social Security benefits are then taxed. The tax bite could take 68 to 91 percent of their additional earnings. Mr. President, this is absurd. We must correct this unfair tax burden on our seniors.”