May 24, 2007 — Congressman Trent Franks (AZ-02) introduced the Seniors’ Financial Security Act of 2007, which would fully repeal the federal Social Security Tax as well as the Tier I Railroad Retirement for retirees.

Congressman Franks stated, “If we truly take seriously the need to protect the financial security of current retirees and the retiring Baby Boomer generation, the bill I introduced today would be one of the most effective methods for doing just that.  It would eliminate the double-taxation on seniors who have already spent years paying taxes on their wages.  It is ridiculous to ask our seniors, in perhaps their most financially vulnerable years, to fund not only the Social Security Trust Fund, but other obscure government programs.  If Democrats truly contend that they support our seniors, this would be one excellent opportunity to prove it.”

Using 2000 population and income levels with 2003 provisions of law, the Congressional Budget Office (CBO) has estimated that 39% (or 15.6 million) of Social Security beneficiaries are affected by the income taxation of Social Security benefits.  In addition, the Congressional Research Service reports that at least 88% of citizens age 65 or older receive Social Security benefits, which for many are their primary or only source of income.

Franks’s bill is expected to be referred to the House Ways and Means Committee.