For years Social Security has put a hindering on the functionality of United States citizens. Retirement is a very important choice for many people and social security restraints hurt many citizens annual income. Worst of all, the social security penalty has a vast effect on senior citizens considering retirement. This issue has been challenged in many courts and attempts to repeal this issue totally have failed in the past. Retirees drawing Social Security benefits are subject to something called an Earnings Test. This test will determine each person's social security benefits. For those ages 65 through 69, one dollar of benefits is withheld for every three dollars in wage income above $17,000 per year. For those ages 62 through 64, one dollar is withheld for every two dollars earned above $10,080. This penalty is unfair to those hard workers who earn more than the social security standard. Hard working citizens should not be penalized when applying for social security. This earnings test has proven to be the most unfair policy for senior citizens in the United States. This test should be ruled out and senior citizens should be entitled to social security benefits no matter what their annual income may be. (6).
The Social Security earnings test is among the most unfair of many policies ever imposed by the federal government. On the one hand, we are continually told that workers have a right to Social Security whenever there is a proposal to modify cost of living adjustments. But on the other hand, we take away benefits from many seniors simply because they have chosen to work past the normal retirement age. Historically it has been those most outspoken about Social Security rights who have opposed the elimination of the Social security earnings test. .
In 2000, Congress ended the Social Security earnings limit for seniors 65 years old and older. However, workers age 62 through 64 who decide to take early retirement are still penalized with an earnings limit tax.
