Every once in a while, Congress manages to get something right. This is one of those times. The proposed legislation is Senator Rubio’s Let Seniors Work Act of 2014. Current law requires America’s working seniors who are past retirement age to continue to pay Social Security taxes, all while receiving almost no extra benefits in return. Therefore, the way the law is written today encourages some seniors to quit the workforce before they otherwise would have.
As the law stands today, seniors who have reached retirement age and continue to work are forced to pay a 12.4 percent payroll tax. Senator Rubio’s legislation will remove this disincentive to work, and would repeal the Retirement Earnings Test (RET).
Eliminating the 12.4 percent Social Security payroll tax for all individuals 65 and older, will help seniors save more, and allow them to keep more of their money. This tax cut will pay for itself and seniors will most likely respond by working more, thus increasing overall federal income tax revenue. In addition, it allows seniors to save more, making them less dependent on federal programs.
The second important component to this bill is the repealing of the RET. Under the RET, benefits for Americans between the ages of 62 to 65 are reduced by about 50 cents on the dollar if they earn more than $15,000 per year. What this means for seniors is a 50 percent tax on top of all the other taxes they are paying. After nearly five decades of paying taxes, the least we can do for America’s seniors is to grant them this tax cut.
In a day-and-age where so many are discouraged and leaving the work force, it’s high time we begin to incentivize employment for all Americans. Penalizing our nation’s seniors because they dare to work when the government wants them to become fully-dependent on their programs is outrageous.
By passing this legislation, and enacting the suggestions put forth by Senator Rubio, we will be supporting those who have worked hard, and paid the excessive tax bills the government has asked of them over the decades. For the work they have done in the past, present and future, these hard-working Americans are overdue for a tax cut.
Learn more about the Let Seniors Work Act of 2014 here, and join me in supporting Senator Rubio and this important piece of legislation. This is smart policy for our nation’s seniors.