The Social Security Freedom of Income Act.

 Proposed Law:  Greg Penglis.  7/13/24

Title 42 U.S. Code, Section 403, shall be amended by repealing and deleting: (a) Maximum Benefits, Part (1) and subparts (A) through (D).

This part reads as follows, and shall be repealed and deleted.

(a) Maximum Benefits:

     (1)  In the case of an individual whose primary insurance amount has been computed or recomputed under section 415(a)(1) or (4) of this title, or section 415(d) of this title, as in effect after December 1978, the total monthly benefits to which beneficiaries may be entitled under section 402 or 423 of this title for a month on the basis of the wages and self-employment income of such individual shall, except as provided by paragraphs (3) and (6) (but prior to any increases resulting from the application of paragraph (2)(A)(ii)(III) of section 415(i) of this title), be reduced as necessary so as not to exceed—

          (A)  150 percent of such individual’s primary insurance amount to the extent that it does not exceed the amount established with respect to this subparagraph by paragraph (2),

          (B)  272 percent of such individual’s primary insurance amount to the extent that it exceeds the amount established with respect to subparagraph (A) but does not exceed the amount established with respect to this subparagraph by paragraph (2),

          (C)  134 percent of such individual’s primary insurance amount to the extent that it exceeds the amount established with respect to subparagraph (B) but does not exceed the amount established with respect to this subparagraph by paragraph (2), and 

          (D)175 percent of such individual’s primary insurance amount to the extent that it exceeds the amount established with respect to subparagraph (C).

Any such amount that is not a multiple of $0.10 shall be decreased to the next lower multiple of $0.10.

Rationale:

It is an abomination that people who have worked and paid into Social Security, by force of law, who have chosen to work after taking early retirement at 62, should have Social Security dictate how much money they can earn, before Social Security takes their money back.

Current law in brief says that if you earn more than $22,000 in 2024, for every two dollars you earn over that, the government will confiscate one dollar of your Social Security payment! What makes this worse is that anyone earning money while on Social Security is STILL PAYING INTO Social Security!

This is a very simple bill. By repealing any provision in law whereby the government can arbitrarily reduce and take back what citizens have worked for their entire working life and were guaranteed by the Social Security system, citizens are free to work and earn as much as they are able or want, with no effect on their Social Security payment at all.

By deleting the above section you redress this most odious grievance against millions of American's simply for the desire, and in most cases the need, to work, while on Social Security, because it just does not pay enough for any kind of personal security, and is in fact a "Second Income Tax," with a small reimbursement.

Social Security is not "insurance," it is not a "benefit," it isn't even an "entitlement." It is a contract and a guarantee that people forced into the system through earning income, will get a payment from Social Security upon retirement. No other conditions can or should ever apply that would reduce that payment.

Currently Americans must pay for a system that rewards them far less than the Chilean system of "Individual Security" of income deductions into private investments throughout their working lives, where individuals can manage and keep the full amount upon retirement. This is the system we must go to, and we shall write a separate, and more complex bill to that end.

STOP TAKING MONEY BACK FROM AMERICAN RETIREMENT AGE INCOME EARNERS!

Link to U.S. Code, Title 42, Section 403 - Reduction of Insurance Benefits:

https://www.law.cornell.edu/uscode/text/42/403  

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