Ehrlich on Washington column, February 28, 2000

NEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1407 York Road, Suite 304 Lutherville, Maryland 21093 315 Cannon House Office Building Washington, D.C. 205 1 5 EHRLICH ON WASHINGTON Week of February 28, 2000 By Congressman Robert L. Ehrlich, Jr. Restoring Fairness For America’s Seniors It's always a pleasure when, as your Congressman, I can do the right thing and help solve multiple problems. In this instance, these problems concern the number of unfilled jobs posted by businesses throughout the state and the number of senior citizens who would love to re-enter the workforce in some capacity, but are discouraged by the government from doing so. I am referring, of course, to the Social Security earnings limit, the “federally mandated work disincentive.” When the earnings limit was first devised in 1935, America was coming out of the Depression. During this time of high unemployment, many folks believed America’s success depended on fueling the economy with a younger, more robust workforce. The earnings test was designed to encourage older people to retire, making their jobs available for younger workers. While the earnings test was adjusted to reflect a changing workforce, the earnings limit was never eliminated. Today, with unemployment at an all-time low, America no longer needs this antiquated mechanism, and actually needs older, talented Americans to fill many job openings. Incredibly, over 800,000 seniors are currently penalized for working and earning more than the amount allowed, as determined by the Social Security earnings limit. In 2000, working seniors aged 65-69 will lose $1 of their Social Security benefits for every $3 in earnings over $17,000. Because of this built-in work "disincentive," many retirees with the time and interest, choose not to work. This will change in 2002 when the earnings limit increases to $30,000 thanks to the passage of H.R. 3136 by the Republican-led 104th Congress. Now, my colleagues and I in the Republican-led Congress are working to do more than raise the earnings limit; we are committed to repeal it . To this end, I am co-sponsoring H.R. 5, the Senior Citizens' Freedom to Work Act of 1999, which would eliminate the Social Security earnings limit for seniors. This bill will give older Americans the opportunity to continue working without being penalized for their initiative and effort while also helping keep America’s economic engine humming.