“This tax was imposed years ago to help counteract a growing federal deficit,” Jones said.  “Today, the budget is balanced and our economy is booming, yet more than 8 million of our nation’s seniors are still paying – on average – more than $1100 each year in taxes on their Social Security benefits. Now that the tax is both outdated and unnecessary, it’s time to repeal it and provide our seniors some relief.”

The Social Security Benefits Tax Relief Act (H.R. 4865) would repeal the income tax increase on Social Security benefits that was imposed as part of the Administration’s 1993 budget plan.  That law has allowed the Social Security benefits of recipients whose incomes exceed $34,000 to be taxed at rates as high as 85 percent. The Congressional Budget Office estimates that by the year 2010, more than 17 and a half million Social Security beneficiaries could be affected by this tax.

“Earlier this I year, I voted to eliminate the earnings limit on Social Security because I believe that our seniors who choose to work or need to work should not be punished by the federal government.  This bill is one more way to work toward that goal, “Jones said.

The Social Security Benefits Tax Relief Act of 2000 passed the U.S. House of Representatives by a vote of 265 – 159 and has been referred to the Senate for its consideration.