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Senior Citizens’ Freedom to Work Act of 2026 Outlined in Post - AI.com
The Social Security Earnings Test severely limits early retirees’ ability to earn income without having their benefits reduced. Because of this provision, many older Americans are forced out of the workplace when they would otherwise continue contributing to payroll tax revenue.
Administration of the earnings test is an overly complex process, creating an extraordinary amount of clerical effort to track. Likewise, for those who elect to file early, it is often a surprise that affects cash flow planning in retirement, especially among those intending to use the extra income to bolster their savings for later years. From Social Security’s revenue perspective, limiting the earnings of retirees reduces payroll taxes, thus exacerbating the program’s financial problems. Eliminating this provision would encourage workforce participation and allow retirees to earn more and pay more into the program via FICA taxes.
These factors and more have contributed to the Senior Citizens’ Freedom to Work Act of 2026 (S.4184) introduced in Congress March 26, 2026, by Sen. Rick Scott, R-Florida and Rep. Greg Murphy, R-North Carolina and referred to the Committee on Finance. A post by AI.com’s Leada Gore provides additional background on the proposed legislation.
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