Smith, Bayh Move to Repeal Double Taxation
of Social Security
Legislation will benefit 9 million seniors
WASHINGTON, DC - Today, Senators Gordon Smith (R-OR) and Evan Bayh (D-IN) introduced the Senior Citizens Relief Act of 2003 which would repeal the 1993 tax increase on Social Security benefits.
"The increase punishes seniors who have saved over the years and those who want to continue working. That's patently unfair," said Smith. "Nine million seniors stand to benefit from this legislation immediately and that number is only going to increase as baby boomers start to retire."
Before 1993, single retirees with incomes above $25,000 and couples above $32,000 paid taxes on 50 percent of their Social Security benefits. In 1993, however, the income threshold was raised to $34,000 and $44,000 for singles and couples, respectively. In addition, the increase subjected 85 percent of benefits to this double taxation. The hike increased levies on approximately one-in-four social security beneficiaries. The Senior Citizens Relief Act will gradually restore the income threshold and tax rates to their pre-1993 levels.
"Seniors who have earned their Social Security benefits over a lifetime of hard work shouldn't have those benefits double-taxed by the government,"said Bayh. "I look forward to working with Senator Smith to enact this sensible, bipartisan proposal as part of a broader economic stimulus plan -- and in so doing, provide tax relief to thousands of retired Hoosiers."
Joining Smith and Bayh as cosponsors of the legislation are Senators John Warner (R-VA), Zell Miller (D-GA) and Saxby Chambliss (R-GA). Representative Peter King (R-NY) introduced similar bipartisan legislation (H.R. 133) in the House of Representatives.
The legislation is supported by the National Taxpayers Union, the 60 Plus Association, the Seniors Coalition, the United Seniors Association, and Americans for Tax Reform.
