Subject: Urgent Notice and Call for Action
Sender: Anthony Cobb <73531.1123@compuserve.com>
FROM: James Gashel
Director of Governmental Affairs
RE: The Social Security earnings limit--ACTION NEEDED NOW!
The issue of the Social Security earnings limit and its
effect
on blind people is now coming down to the "end of session
legislation" that Congress will consider and pass before the
planned adjournment on October 9. In fact, a proposal to raise the
senior citizens' earnings limit through an additional series of
mandated steps has been included in a tax relief bill which the
House will very likely pass this week.
The proposal made in H.R. 4579 calls for raising the seniors'
limit to $17,000 for 1999 from $15,500 scheduled to take effect
under current law. Also, the limit which is scheduled to rise to
$30,000 in 2002 would be adjusted further in a series of annual
steps through 2008 and become $39,750 in that year.
A conforming amendment to exclude the blind from these
adjustments has been included in the bill before the House. If the
amendment is removed in the Senate, the linkage of the blind
persons' and senior citizens' exemptions could be restored
effective in 1999. Although the House must eventually agree with
this, the focus right now is solely on the Senate. Therefore, a
maximum effort must now be made to secure such an amendment.
At this point, we have requested help from both Senator
McCain
and Senator Dodd. They are the principal sponsors of the Blind
Persons' Earnings Equity Act, S. 375. With Senator Lott, the
Majority leader, and Senator Daschle, the Minority Leader, as
cosponsors, we are well positioned for an effort to obtain an
acceptable amendment.
Therefore, all Senators should be contacted for support.
Those who are cosponsors of S. 375 are most likely to help. Anyone
who will do so should contact Senator Lott and Senator Daschle to
express their interest in having the blind persons' earnings limit
raised along with the adjusted amounts for seniors. Also, all
Senators should be urged to notify Senator McCain and Senator Dodd
of their desire to restore the earnings exemption linkage.
Finally, communications with Senator Lott and Senator Daschle
from anyone anywhere in the country are encouraged. The letter
that follows provides information that might be used in this
effort. Also, the list of current Senate cosponsors follows the
letter. These Senators should be most likely to be willing to help
us in this, but they are not the only ones. So, let's all get with
it and make the effort!!
September 22, 1998
The Honorable Trent Lott, Majority Leader
United States Senate
Washington, D.C. 20510
Dear Senator Lott:
This concerns legislation now moving toward passage in the
House to raise the Social Security earnings limit for age sixty-
five retirees. A proposal to do this has been included in H.R.
4579, the "Taxpayer Relief Act of 1998," which will come to the
Senate after passing the House in a few days.
In addition to the earnings-limit adjustments, this bill
includes several tax changes which many members would like to have
enacted before the present session of Congress ends. Also, it is
likely that other measures of a "must-pass" nature to extend
expiring authorities will be folded into a bill with the tax
provisions and earnings-limit changes.
With this in mind, the National Federation of the Blind
requests your support for an amendment to raise the Social Security
earnings limit for blind people to the adjusted exempt amounts now
being proposed for seniors. This is consistent with your announced
position as a cosponsor of S. 375, "The Blind Persons Earnings
Equity Act," and with your bill, S. 202, proposing the removal of
the earnings limit altogether. In this latter bill, it was at your
personal direction that blind people would be treated the same as
seniors.
At this point a "conforming amendment" in H.R. 4579 proposes
that the earnings of blind Social Security beneficiaries would
still be capped at $12,600 plus incremental annual adjustments.
However, the earnings limit for seniors would be raised from
$15,500 now scheduled for 1999 to $17,000. The exempt amounts in
subsequent years would also be adjusted in mandated steps through
the year 2008 when the seniors' limit would reach $39,750 as
compared to the current-law limit of $30,000 in 2002.
As you know, the basic exempt amount for blind people was
linked by law to the exempt amount for seniors from 1978 until
March, 1996. Since that time, you and others have said that an
injustice was done to the blind when the linked exemption policy
was broken. That injustice would be corrected in part at least if
the conforming amendment cited above is stricken in earnings limit
changes approved by the Senate.
Please work to accomplish this objective in regard to any
earnings-limit adjustments proposed as part of the tax relief
measure or other relevant legislation. A detailed explanation of
the reasons to restore the earnings limit linkage as called for in
S. 375 is presented in the fact sheet provided with this letter.
Very truly yours,
James Gashel
Director of Governmental
Affairs
NATIONAL FEDERATION OF THE
BLIND
For further information contact:
James Gashel
Director of Governmental Affairs
NATIONAL FEDERATION OF THE BLIND
1800 Johnson Street
Baltimore, Maryland 21230
(410) 659-9314
FACT SHEET
WINNING THE CHANCE TO EARN AND PAY TAXES:
HOW THE BLIND PERSON'S EARNINGS LIMIT IN THE
SOCIAL SECURITY ACT MUST BE CHANGED
PENDING BILLS: H.R. 612 ; S. 375
PURPOSE: To restore the linkage between the earnings exemption
threshold for blind persons and the exemption allowed for retirees
at age 65 under title II of the Social Security Act
BACKGROUND: As the result of a 1996 law to raise the debt limit,
senior citizens age 65 to 70 are encouraged to continue working
while retaining entitlement to Social Security benefits. This is
being done by annual changes in the exempt earnings threshold,
which is $14,500 in 1998 and will increase to $30,000 by the year
2002. In making the case for this change, advocates in Congress
explained that senior citizens in greater numbers would now have
the opportunity to work, earn, and pay taxes.
In spite of a law passed in 1977 to establish the earnings
exemption threshold for blind people at the identical exempt amount
used for seniors, a decision was made to exclude the blind from the
higher exemptions. This means that a lower earnings limit for the
blind is now in effect. This lower limit for 1998 is $12,600. By
2002, when the exemption for seniors becomes $30,000, the lower
limit for the blind is expected to be $14,400.
Earnings of this amount for a blind person who is age 64 will
cause the complete loss of Social Security benefits until the
individual becomes a retiree at age 65. At that point the same
individual is allowed to earn more than twice the amount allowed
for the blind. This is the inequity that now exists.
EXISTING LAW: Section 216(i) of the Social Security Act defines
"blindness" in precise medical terms. Therefore, blindness--as
with age--can be determined with reasonable certainty. In this
respect, blindness is unlike any other disability subject to
evaluation under the Social Security Act. All other disabilities
are determined on the basis of an individual's "inability to engage
in substantial gainful activity," which is a complex and fairly
subjective determination in many cases.
Although blindness is precisely defined, monthly benefits are
not paid to all persons who are blind but only to those whose
earnings (if any) are below the annually adjusted limit. Personal
wealth not resulting from current work activity does not count as
earnings and has no effect on eligibility. Only work is penalized.
It was the recognition of this fact that led to the greater
exemption of earnings now allowed for seniors, and the situation
for blind people is precisely the same.
ACTION REQUESTED: Congress should restore work incentive equity by
reenacting the identical earnings exemption threshold for blind and
senior citizen beneficiaries under title II of the Social Security
Act. Legislation to achieve this objective has been offered in
bills submitted in both the House and the Senate. The House bill
is H.R. 612, sponsored
by Representative Barbara Kennelly. The
companion bill in the Senate is S. 375, sponsored by Senators
McCain and Dodd. Although neither bill was considered beyond
introduction in the last session of Congress, an impressive list of
cosponsors indicates that substantial, bipartisan support exists in
both the House and the Senate.
The National Federation of the Blind strongly supports this
legislation. By creating a lower earnings limit for the blind, the
action in the 104th Congress has resulted in a harsh work
disincentive policy which is widely regarded as an inequity created
in the rush to pass the 1996 debt ceiling bill.
NEED TO REMOVE WORK DISINCENTIVES: Mandating the adjustments in
the earnings limit for blind people in the manner now allowed for
age 65 retirees will provide more than 100,000 blind beneficiaries
with a powerful work incentive. Most blind people could then not
lose financially by working. Moreover, the mandated earnings limit
changes would be cost-beneficial, since among those of working age
most blind people are already beneficiaries. At present their
earnings must not exceed a strict limit of $1,050 per month. When
earnings exceed this exempt amount, the entire sum paid to a
primary beneficiary and dependents is abruptly withdrawn after a
trial work period.
When a blind person finds work, there is absolutely no
assurance that earnings will replace the amount of lost disability
benefits after taxes and work expenses are paid. Usually they do
not. Therefore, few beneficiaries can actually afford to attempt
substantial work. Those who do will often sacrifice income and
will certainly sacrifice the security they have from the automatic
receipt of a monthly check.
This group of beneficiaries--people of working age who are
blind--must not be forgotten now that the earnings exemption has
been raised for seniors. Just as with hundreds of thousands of
seniors, the positive response of blind people to the higher
earnings exemptions will bring additional revenues into the Social
Security trust funds. The chance to work, earn, and pay taxes is
a constructive and valid goal for senior citizens and blind
Americans alike. COSPONSORS OF
S. 375
ALABAMA
Senator, Richard Shelby, R
ARKANSAS
Senator Tim Hutchinson, R
ARIZONA
Senator John McCain, R
CALIFORNIA
Senator Barbara Boxer, D
COLORADO
Senator Ben Nighthorse Campbell, R
CONNECTICUT
Senator Christopher, Dodd, D
Senator Joseph I. Lieberman, D
DELAWARE
Senator Joseph R. Biden, Jr., D
FLORIDA
Senator Connie Mack, R
IOWA
Senator Charles Grassley, R
Senator Tom Harkin, D
ILLINOIS
Senator Richard J. Durbin, D
Senator Carol Moseley-Braun, D
KANSAS
Senator Sam Brownback, R
Senator Pat Roberts, R
KENTUCKY
Senator Wendell Ford, D
LOUISIANA
Senator John B. Breaux, D
Senator Mary L. Landrieu, D
MASSACHUSETTS
Senator John F. Kerry, D
MINNESOTA
Senator Paul Wellstone, D
MISSOURI
Senator Christopher S. Bond, R
MISSISSIPPI
Senator Thad Cochran, R
Senator Trent Lott, R
NEBRASKA
Senator Chuck Hagel, R
NEW HAMPSHIRE
Senator Judd Gregg, R
Senator Robert C. Smith, R
NEW MEXICO
Senator Jeff Bingaman, D
NEVADA
Senator Harry Reid, D
OHIO
Senator Mike DeWine, R
Senator John Glenn, D
OREGON
Senator Ron Wyden, D
RHODE ISLAND
Senator Jack Reed, D
SOUTH CAROLINA
Senator Ernest Hollings, D
Senator Strom Thurmond, R
SOUTH DAKOTA
Senator Thomas Daschle, D
VIRGINIA
Senator John W. Warner, R
WASHINGTON
Senator Patty Murray, D
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