The Senior Citizen Income Security Act (H.R. 1140)
Washington, Oct 12 -
Congressman Posey introduced the Senior Citizen Income Security Act to help senior citizens improve their economic well being and to restore some of the original promises that were made years ago through Social Security. The legislation implements the following:
1. Repeals the 1993 Clinton tax increase on Social Security benefits so that no senior is double taxed on their earned Social Security benefits;
2. Eliminates the requirement that seniors begin mandatory withdrawals from IRAs at age 70½. This change will remove seniors from the unfair burden that forces them to begin withdrawals from retirement accounts in the aftermath of significant market losses;
3. Eliminates Social Security payroll taxes for Social Security recipients. Since they are already receiving Social Security benefits, it makes no sense to take Social Security taxes out of their paychecks;
4. Allows seniors to continue receiving their earned Social Security benefits if they choose not to enroll in Medicare Part A; and
5. Creates a new $250 exemption to eliminate burdensome tax paperwork for small amounts of income from savings accounts, dividends, or capital gains.
6. In the event that the federal statutory debt ceiling is reached, the federal government would service the debt and pay Social Security benefits.
Recently Jim Martin, President of the 60 Plus Association, called Posey’s bill a “modest step that will make a tremendous difference in the financial situation of millions of America’s seniors, by providing them financial relief during one of the most negative and threatening economic environments since the Great Depression.”
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