Minnesota
- 7th District
http://www.house.gov/collinpeterson/
FOR IMMEDIATE RELEASE: March 2, 2000
CONTACT: Jordan Rapp/202-225-2165
Bill will also help farmers
WASHINGTON, DC
– On a bipartisan vote, the House of Representatives unanimously passed
H.R. 5, legislation by Rep. Collin Peterson (D-Minn) and Rep. Sam
Johnson (R-TX) that would repeal the Social Security earnings limit and
allow seniors to work this year and every year thereafter without a reduction in their Social Security
benefits.
“The Social Security earnings limit is a law that American seniors love to hate — and for good reason: about 1.4 million retirees between the ages of 62 and 70 lose part or all of their current Social Security payments each year because they earn more than the law allows,” Peterson said on the floor of the House of Representatives.
The Social Security earnings limit provides a disincentive for retired seniors to work. It does this by cutting Social Security payments to those earning more than a certain amount. For instance, seniors between the ages of 65 to 69 will lose $1 in benefits for every $3 they earn above $17,000.
“At long last, the House is ready to end this unfair penalty. The earnings limit is a depression-era relic that was designed to move seniors out of the workforce in order to make room for younger generations of workers,” Peterson said. “ However, today’s economy bears no resemblance to the American economy of the mid-twentieth century and the Social Security earnings limit has outlived its time. Today, our economy is experiencing labor shortages, and a law that makes it prohibitive for seniors to join the work force is simply bad policy.”
Peterson added, “This bill will also help retired farmers who rent their land. Currently, because of an IRS interpretation that goes against Congress’ intent, farmers are subject to self-employment taxes on income from rented land. In fact, farmers are the only people subject to this tax for rental land. The income they earn counts towards the earnings limit and offsets their benefits. H.R. 5 will put an end to this. I urge the House to continue looking into this unfair tax and end it for all farmers.”
The President has said he will sign this bill if it reaches his desk. The bill will take effect retroactively on January 1, 2000.
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