1110 EXTENSIONS OF REMARKS January 13, 1'977 EXTENSIONS OF REMARKS REMOVING THE EARNINGS LIMITA­ situation as typical of many senior citi­ RECORD the complete text of my bill, and TION ON SOCIAL SECURITY zens, Richard L. Tobin, executive director I urge my colleagues to fully support this of the Saturday Review, recently stated legislation. in the New York Times: H.R. 1768 HON. BENJAMIN A. GILMAN If your income derives from stocks or bonds A blll to amend title II of the SoclaJ. Secu­ OF NEW YORK and not from a paycheck, you can collect rity Act to reduce from seventy-two to IN THE HOUSE OF REPRESENTATIVES the whole Social Security check each month. siXty-five the age beyond which deductions But for those of us who live from paycheck on account of an individual's outside earn­ Wednesday, January 12, 1977 to paycheck, and whose income comes di­ ings wlll no longer be made from such Mr. GILMAN. Mr. Speaker, today I rectly from the sweat of our aging brow, individual's benefits am introducing legislation eliminating there is little or no chance of our beg1nn1ng Be it enacted by the Senate and House of to collect on the Social Security benefits Representatives of the United States of the earnings limitation on social security we've been entitled to ever since we hit 65. benefits paid to individuals age 65 and America in Congress assembled, That (a) For senior citizens who must live "from subsections (c) (1), (d) (1), (f) (1) (B), and over. (j) of section 203 of the Social Security Act Under the present social security sys­ paycheck to paycheck," the earnings are each amended by striking out "seventy­ tem, individuals between age 65 and 71 limitation attached to social security two" and inserting in lieu thereof "siXty­ receive a reduced social security benefit benefits, robs these citizens, as Mr. Tobin five". of $1 for every $2 earned above $3,000 a further stated, "of a chance to retire, at (b) Subsection (f) (3) of such section 203 year-or $250 per month. Individuals least partially.,. 1s amended by striking out "age 72" and in­ who are age 72 and over are exempt Second, the earnings ceiling promotes serting in lieu thereof "age 65". from this earnings limitation and may the wrong set of values. It encourages (c) Subsection (h) (1) (A) of such section 203 1s amended by striking out "the age of receive their entitled social security ben­ some elderly individuals who are willing 72" and "age 72" and inserting in lieu there­ efits regardless of the amount of their and able to work, not to work out of fear of in each instance "age 65". earned income. of suffering reduced social security ben­ (d) The heading of subsection (j) of such Mr. Speaker, according to a Social Se­ efits-or no benefits at all. Senior citizens section 203 . is amended by striking out curity Administration publication enti­ who are able to continue their occupa­ "Seventy-two" and inserting in lieu thereof tled "Monthly Benefit Statistics"-De­ tional endeavors do not fully receive "SiXty-five". cember 28, 1976--20.5 million retired their benefits from the social security SEc. 2. (a) The last sentence of section 203 (c) of the Social Security Act 1s amended workers and their dependents were eli­ program, but they inequitably continue by striking out "nor shall any deduction" gible in 1976 for social security benefits to pay into the program, supporting their and all that follows and inserting in lieu amounting to nearly $4.2 billion. Francis able contemporaries who elect not to thereof "nor shall any deduction be made J. Crowley of the Congressional Record work, and pay income taxes on their under this subsection from any widow's or Service, in a paper entitled "The Social earnings. widower's insurance benefit 1f the widow, Security Retirement Test," stated: Historically, this Nation has valued surviving divorced wife, or widower involved The Social Security Administration actu­ self-reliance and the work ethic. Penaliz­ became entitled to such benefit prior to at­ aries intimate that in 1976 the cost [of re­ ing elderly citizens who are willing and ta1n1ng age 60.". pealing the retirement test] would be about able to work by reducing their social se­ (b) Clause (D) of section 203(f) (1) of $6-$7 b1111on. If the test were eUminated for curity benefits is detrimental to this pre­ such Act 1s amended to read as follows: people age 65 and over ... the average cost "(D) for which such individual is entitled to would be about ... $2.7 billion. cept and discourages able senior citizens widow's or widower's insurance benefits 1f from working. It robs our older Ameri­ she or he became so entitled prior to attain­ Some authorities claim that at least cans of their self-esteem, personal dig­ ing age 60, or". 2.5 million retired workers between age nity, and self-reliance, promoting their (c) Section 203(f) (5) (D) of such Act ts re­ 65 and 71 are directly affected by the institutionalization. Productive senior pealed. earnings ceiling, and other authorities citizens become premature candidates SEc. 3. The amendments made by this Act shall apply only with respect to monthly ill­ are not certain as to the amount of rev­ for nursing homes or park bench pigeon surance benefits payable under title II of enue that would be returned to the feeders. the Social Security Act for months in tax­ Treasury through income taxes if the Finally, the argument that able senior able years ending after the date of the en­ earnings ceiling was lifted. Fortunately, citizens deprive younger individuals of actment of this Act. some aspects of the retirement test are employment has not been thoroughly clear and I would like to share the fol­ studied or demonstrated, especially since lowing thoughts with my colleagues: many elderly citizens reduce their oc­ First, many senior citizens cannot cupational activity or become semi-re­ BILL TO PERMIT INDIVIDUALS WHO retire on the combined social security tired-but, for many of these citizens, HAVE RETIRED ON DISABILITY OR benefits and the low earnings limitation. at the expense of their entitled social WERE ENTIT'LED TO RETIRE ON In the current, highly inflated economy, security benefits. However, even if the DISABILITY TO CONTINUE TO BE these individuals must work in order to argument has some merit, this would be COVERED BY THE SICK-PAY support themselves. But if they work and a high price for this Nation to pay. An EXCLUSION AS IT EXISTED PRIOR their earnings exceed $3,000 a year-or earnings limitation and other policies TO THE TAX REFORM ACT OF 1976 $250 per month-then they are denied that promote forced retirement of elderly their full social security benefits-bene­ individuals deprive this Nation of valu­ fits that they and their employers con­ able skills and talents. With unemploy­ HON. JOSEPH L. FISHER tributed through payroll deductions and ment at unacceptably high levels, let us OF VIRGINU benefits that morally, if not legally, be­ not perpetuate this economic condition long to the retiree. by discouraging elderly citizens from IN THE HOUSE OF REPRESENTATIVES To argue that the social security pro­ working by reducing their hard earned Thursday, January 13, 1977 gram was created to insure against loss benefits. Mr. FISHER. Mr. Speaker, today I am of income "following withdrawal from I support repeal of the retirement test, reintroduing a bill I offered last fall to employment and not, like private insur- but in the alternative, I support increas- enable those individuals who had retired ance, to provide annuities at a prescribed ing the earnings ceiling on social security on disability or were entitled to retire on fixed age" is a broken promise to every benefits paid to senior citizens. disability as of October 1, 1976, to con­ individual who contributes hard earned Mr. Speaker, in the interest of encour­ tinue to claim the so-called "sick-pay" wages to the social security program and aging our older Americans who are exclusion of $5,200 per year for disabil­ who expects, upon retirement, to receive willing and able to work without being ity payments received. the full benefits without any conditions penalized by reduced social security ben­ Although I voted for the Tax Reform attached to the promise. Citing his own efits, I am inserting at this point in the Act of 1976 and strongly supported many January 13, 19'77 EXTENSIONS OF REMARKS 1111 of its reform measures, I did so despite applies to this taxable year and all sub­ of Formosa. A combat pilot on the USS my strenuous objection to particular sec­ sequent years. Thus, individuals who re­ Wasp, he was captured by the Japanese tions of the bill. lied upon current law in preparing their and held until the end of World War II One of those sections which I strongly estimated tax return may find that they as an unregistered prisoner in various opposed was the change made under the owe a whopping tax bill at the end of the Japanese prison camps. At the end of bill to the so-called sick-pay exclusion year because of this retroactive change in hostilities he was found in a prison camp from income for disability payments re­ the law. in Omori, Japan and returned to the ceived. After an initial waiting period, To .remedy this harsh result, Mr. United States for rehabilitation, where the sick-pay exclusion as it existed prior Speaker, today I am introducing a bill he was personally greeted by President to passage of the Tax Reform Act per­ that will enable those who have retired Harry Truman.