Trent Lott: “today I am introducing the Older Americans Freedom to Work Act of 1995 to eliminate the Social Security earnings test…”

“today I am introducing the Older Americans Freedom to Work Act of 1995 to eliminate the Social Security earnings test for individuals who have attained retirement age. As the Social Security Act is designed, the Government seems to give little thought to older Americans' ability to make an important contribution to our work force. Senior citizens are subject to taxes such as the Federal Contributions Act [FICA], even in situations where they are receiving Social Security benefits. They are also subject to various Federal, State, and local taxes. This brings me to the biggest outrage: the Social Security retirement earnings limit. Presently, this limit reduces benefits to persons between ages 65 and 69 who earn more than $11,280 yearly. These reductions amount to $1 in reduced benefits for every $3 in earnings above the aforementioned limit--$1 for $3 withholding rate. The earnings test is very unfair, but it also poses a serious threat to the labor work force. Demographers tell us that between the years 2000 and 2010 the baby boom generation will be in their retirement years. With fewer babies being born to replace them, this Nation is looking at a severe labor shortage. The skills and expertise of older workers is desperately needed. An earnings limit for Social Security beneficiaries is an ill conceived idea and an administrative nightmare for the Social Security Administration [SSA].”