Wednesday, November 19, 1997

WASHINGTON, DC - US Representative Ron Paul (R-Surfside) is this week unveiling an aggressive four-point plan to cut taxes and earning limitations on senior citizens. This "Seniors' Agenda for 1998" includes legislation the congressman has introduced which will repeal the 1993 tax increase levied on senior citizens by President Clinton.

The Paul package for seniors includes:

1. Total repeal of the "Earnings Limit" placed on seniors 2. Total repeal of the Clinton 1993 tax hike on senior citizens 3. Passage of the "Social Security Preservation Act" 4. Total repeal of the Capital Gains and Estate taxes.

"Passage of any of these four items would represent a real victory for senior citizens and all Americans, and I pledge to work vigorously on each of them throughout 1998," said Paul.

The Social Security Preservation Act is legislation Paul has co-sponsored which will end the practice of the federal government "borrowing" from the Social Security Trust Fund.

"Each year the Washington politicians take the money Americans pay into social security and funnel the funds into pork-barrel projects. By stealing the money from the Social Security fund, the politicians are able to claim they are living within their means, when in reality they are stealing from our senior citizens." Paul said the Social Security Trust Fund should be kept completely intact, without any borrowing for any purpose. "The federal government claims this is a retirement account. If a private company tries to borrow from the pension plan of its employees, they would face criminal charges of mismanagement. It's time for the federal government to follow the law and not rob the Social Security system."

During the past year, Paul voted against changing the Cost-Of-Living-Adjustment calculations. The proposed calculations would have cut benefits for senior citizens and military retirees, while increasing the tax burden on the middle class. Paul said he will continue to fight against this "accounting gimmickry used to hike taxes and cut benefits."

Paul also successfully worked to cut the capital gains and estate taxes, but said those two taxes need to be completely repealed - a goal he will work to attain during the 1998 legislative calendar.

"Those taxes hurt middle-class senior citizens more than anyone else. Congress needs to repeal both during the upcoming session."

Paul will also work to eliminate the "earnings limit" placed on senior citizens, and he has cosponsored to achieve that goal. The limit cuts off Social Security benefits to senior citizens who earn even pennies over the arbitrary line.

"Every senior citizen who has paid into Social Security deserve to get their money back, no matter how much they make. It is ridiculous that we limit people from providing for themselves, and then punish them by not letting them get back the money they paid into the system."

In addition, Paul will be working for passage of his own bill, the Social Security Beneficiaries Tax Reduction Act. The measure will repeal the 1993 tax hike Clinton levied on the earnings of senior citizens.