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Congressional Corner: Representative Charles Bass Introduces Fair Benefits for Seniors Act Bill Reduces Taxes on Social Security and Helps Provide a Fair COLA for Seniors
"This bill, H.R. 4551, would repeal the 1993 increase in taxes on the benefits of many Social Security recipients," said Bass. "It was unfair to increase taxes on Social Security and reduce the benefits many seniors have been promised and rely upon to pay for necessary items." In 1993, the taxable portion of Social Security benefits was increased from 50% to 85% for individuals earning more than $34,000 and couples earning $44,000. According to Bass, more and more seniors will be affected as the years go by because these income levels are not indexed to inflation. In addition to cutting Social Security taxes for many seniors, the New Hampshire Republican's bill would establish a committee to develop a Consumer Price Index to measure the spending habits of senior citizens. Currently, COLAs on Social Security are based on the spending habits of wage earners and clerical workers. Bass noted that estimates show the cost of goods purchased by seniors increased by ten percentage points more than goods purchased by the general public over the past 16 years. "The federal government promised to give Social Security recipients a fair COLA to keep up with inflation," said Bass. "Annual increases in benefits, however, are not keeping pace with escalating prices of the goods and services upon which seniors spend much of their money. We need a COLA that places greater weight on the cost of such goods and services as medical care and prescription drugs-areas where seniors and the disabled spend more than other Americans." This article first appeared in Volume 5, Issue 10 of "The Social Security and Medicare Advisor" newsletter (October/2000). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
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Representative Charles Bass (R-NH) has introduced legislation to help improve retirement security to older Americans. The Fair Benefits for Seniors Act would cut taxes on Social Security benefits and provide a fair Cost-Of-Living Adjustment (COLA) for seniors. 