SENIOR ASSEMBLY FEDERAL PROPOSAL NO. 6

INTRODUCED BY SENIOR ASSEMBLY MEMBER LOPES

LEGISLATIVE COUNSEL'S DIGEST

AFP 6: SOCIAL SECURITY ADJUSTMENT

UNDER EXISTING LAW, THE AMOUNT PAID BY EMPLOYEES AND EMPLOYERS INTO THE SOCIAL SECURITY FUND IS 6.2% OF ALL EARNINGS. THE AMOUNT PAID BY SELF-EMPLOYED INDIVIDUALS INTO THE SOCIAL SECURITY FUND IS 15.3% OF ALL EARNINGS. THE MAXIMUM AMOUNT OF TAX PAID INTO THE SOCIAL SECURITY FUND IS BASED ON AN EARNINGS CAP OF $102,000.

THIS MEASURE WOULD MEMORIALIZE THE CONGRESS AND THE PRESIDENT TO ENACT LEGISLATION THAT WOULD RAISE THE PRESENT CAP TO $250,000; THAT ANYONE 65 YEARS OF AGE OR OLDER WHO FILES A FEDERAL INCOME TAX RETURN AS SINGLE ADD NO MORE THAN 75% OF SOCIAL SECURITY BENEFITS RECEIVED ABOVE $35,000 TO HIS OR HER ADJUSTED GROSS INCOME; THAT ANYONE 65 YEARS OF AGE OR OLDER WHO FILES A FEDERAL INCOME TAX RETURN AS MARRIED FILING JOINTLY ADD NO MORE THAN 75% OF SOCIAL SECURITY BENEFITS RECEIVED ABOVE $50,000 TO THEIR ADJUSTED GROSS INCOME; THAT THE STATUS OF SINGLE INCLUDES MARRIED FILING SEPARATELY, HEAD OF HOUSEHOLD, AND QUALIFYING WIDOW(ER) WITH DEPENDENT CHILDREN; THAT THE
TAX RATE PAID BY EMPLOYEES AND EMPLOYERS IN TO THE SOCIAL SECURITY FUND BE NOT MORE THAN 5%; AND THAT THE TAX RATE PAID BY SELF-EMPLOYED INTO THE SOCIAL SECURITY FUND BE NOT MORE THAN 10%.

VOTE: MAJORITY.

AFP 6: RELATING TO TAXES PAID BY EMPLOYERS AND EMPLOYEES INTO SOCIAL SECURITY

WHEREAS, UNDER CURRENT LAW, THE TAX RATE PAID BY EMPLOYEES AND EMPLOYERS EACH INTO THE SOCIAL SECURITY FUND IS 6.2 PERCENT OF ALL WAGES AND SALARIES EARNED; AND

WHEREAS, UNDER CURRENT LAW, THE TAX RATE PAID BY SELF‑EMPLOYED INDIVIDUALS INTO THE SOCIAL SECURITY FUND IS 15.3 PERCENT OF ALL WAGES AND SALARIES EARNED; AND

WHEREAS, THE CURRENT MAXIMUM TAXABLE EARNINGS CAP ON WHICH TAXES ARE PAID INTO THE SOCIAL SECURITY FUND IS $102,000; AND

WHEREAS, A PERSON EARNING EQUAL TO OR MORE THAN $102,000 IS OBLIGATED TO PAY NO MORE THAN $6,324 INTO THE SOCIAL SECURITY FUND; AND

WHEREAS, SELF-EMPLOYED INDIVIDUALS EARNING MORE THAN $102,000 WILL PAY NO MORE THAN $15,606 INTO THE SOCIAL SECURITY FUND; AND

WHEREAS, RAISING THE MAXIMUM WAGE AND EARNINGS CAP FROM $102,000 COULD ALLEVIATE THE SO-CALLED SOCIAL SECURITY DEFICIT; AND

WHEREAS, LOWERING THE CURRENT RATE PAID BY ALL PAYERS WOULD RESULT IN A SAVINGS TO ALL PAYERS; AND

WHEREAS, ANY PERSON EARNING HIGHER EARNINGS WOULD BE ASSURED OF A HIGHER PENSION AT RETIREMENT; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2008 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT THE PRESENT INCOME CAP OF $102,000 ON TAXABLE INCOME FOR SOCIAL SECURITY BE RAISED TO $250,000; AND BE IT FURTHER

RESOLVED, THAT ANYONE 65 YEARS OF AGE OR OLDER WHO FILES A FEDERAL INCOME TAX RETURN AS SINGLE AND NO MORE THAN 75 PERCENT OF SOCIAL SECURITY BENEFITS RECEIVED ABOVE $35,000 TO HIS OR HER ADJUSTED GROSS INCOME AND ANYONE 65 YEARS OF AGE OR OLDER WHO FILES A FEDERAL INCOME TAX RETURN AS MARRIED FILING JOINTLY ADD NO MORE THAN 75 PERCENT OF SOCIAL SECURITY BENEFITS RECEIVED ABOVE $50,000 TO THEIR ADJUSTED GROSS INCOME; AND BE IT FURTHER

RESOLVED, THAT THE STATUS OF SINGLE INCLUDES MARRIED FILING SEPARATELY, HEAD OF HOUSEHOLD, AND QUALIFYING WIDOW(ER) WITH DEPENDENT CHILDREN; AND BE IT FURTHER

RESOLVED, THAT THE TAX RATE PAID BY EMPLOYEES AND EMPLOYERS INTO THE SOCIAL SECURITY FUND BE NOT MORE THAN FIVE PERCENT AND THE TAX RATE PAID BY SELF-EMPLOYED INTO THE SOCIAL SECURITY FUND BE NOT MORE THAN 10 PERCENT; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE CONGRESS AND THE PRESIDENT TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT AND VICE PRESIDENT, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE CHAIRPERSONS OF THE HOUSE AND SENATE COMMITTEES ON AGING, AND TO EACH SENATOR AND REPRESENTATIVE FROM CALIFORNIA IN THE CONGRESS OF THE UNITED STATES.

RN 08 22074

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