Jim Bunning: “today I am introducing the Social Security Benefits Tax Relief Act of 2003. This is a simple bill that would repeal the…”

“today I am introducing the Social Security Benefits Tax Relief Act of 2003. This is a simple bill that would repeal the income tax increase on Social Security benefits that went into effect in 1993. When the Social Security system was created, beneficiaries did not pay Federal income tax on their benefits. However, in 1983, Congress passed legislation that changed all this. The 1983 law requires that 50 percent of Social Security benefits be taxed for senior whose incomes reached a certain level. The revenue this tax generated was then credited to the Social Security trust funds. Although I wasn't in Congress back in 1983, some argued that these changes were necessary because it kept Social Security taxes more in line with taxes on private pensions and because it shored up the Social Security system. In 1993, President Clinton proposed that 85 percent of Social Security benefits be taxable for seniors meeting certain income thresholds, and that this additional money be allocated for the Medicare Program. Unfortunately, Congress passes this provision as part of a larger bill, which President Clinton then signed into law. I was a Member of the House of Representatives at this time. I voted against this bill and didn't support this provision. This tax is unfair to our senior citizens who worked year, after year, after year, paying into Social Security, only to be faced with higher taxed once they retired.”