Right now, the tax code penalizes seniors who choose to keep working. Over 800,000 seniors today, including 11,100 Alabamians, lose part or all of their Social Security benefits because of the Social Security earnings limit. The Social Security earnings limit was created during the Great Depression when jobs were scarce. It was seen as a means to encourage older workers to leave the workforce so more jobs would become available to younger unemployed workers. While such policy might have made sense in those extreme times some 70 years ago, they no longer hold relevance.
Truth is, working seniors are an important part of our national economy.
They should be encouraged to continue working and not be penalized for it. This vital legislation would repeal the Social Security earnings limit affecting income earned after December 31, 1999. For example, beginning this year, seniors age 65 and older would be able to work and earn unlimited income without losing any Social Security benefits. Actuaries from the Social Security Administration have indicated that the long-term cost of the earnings limit repeal on the Social Security Trust Fund would be negligible. The lifting of the earnings limit would not threaten the long-term solvency of Social Security and accordingly HR 5 has been endorsed by all the nation's major seniors advocacy groups, including the AARP and 60 Plus.