Inside the brain of the smartest man in Washington

Paul Works to Lower Taxes for Senior Citizens

August 28th, 2002

Washington, DC: Congressman Ron Paul recently introduced two bills designed to lower taxes for senior citizens. “Seniors should spend their later years enjoying themselves, not dealing with the tax man,” Paul stated. “Congress needs to understand just how harmful some of our tax laws are to seniors, many of whom live on fixed incomes.”

The “Senior Citizens Tax Elimination Act” eliminates income taxes on Social Security benefits altogether, ensuring that seniors will not have to worry about incurring income taxes simply because they collect such benefits.

“We forget that Social Security benefits were not taxed before 1983,” Paul stated. “Since the 1993 Clinton tax increase, however, up to 85% of benefits may be taxed. This represents an insidious form of double taxation, because Social Security benefits are funded with tax dollars in the first place. When Congress taxes Social Security, it really reduces those benefits by stealth. Congress likes to talk about protecting Social Security, but it continues to tax benefits. It’s time to end the terrible income tax on Social Security benefits.”

The “Senior IRA and Pension Preservation Act” provides both income tax relief and flexibility to seniors. Current tax law forces them to make mandatory withdrawals from their IRA and pension plans every year when they reach age 70 1/2, and such withdrawals are taxed as income. Paul’s legislation extends the withdrawal age to 80, allowing seniors to enjoy more tax-free buildup in their retirement plans while keeping their annual tax bills to a minimum.

“Seniors today are living longer and working past age 60 or 65,” Paul stated. “Many don’t want to deplete their IRAs and pensions until much later in life, and the tax rules certainly should not force them to make taxable withdrawals before they wish to do so. The tax rules should not assume that our vibrant seniors need IRA or pension plan income simply because they reach age 70 1/2.”

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Paul Returns 20% of Office Budget to Treasury

August 12th, 2002

Washington, DC.- Earlier this year, the House Administration committee announced that Congressman Ron Paul had returned unused office funds to the Treasury for the fifth straight year. Final accounting for 2001 is now complete, and the committee released final numbers last week showing that Paul returned more than $200,000 to federal coffers! In fact, Paul’s office did not spend $222,323.13 of its office budget in 2001, an amount representing fully 20% of its total yearly allowance. This is the largest amount yet that Paul’s office has returned to taxpayers from its unused office budget.

“I vote against tax increases and spending increases, so I feel I should demonstrate fiscal restraint with the taxpayer dollars that fund my office budget,” Paul stated. “I don’t believe federal agencies and offices, including congressional offices, need to spend every penny of their yearly budgets. I would like to see every part of our federal government commit to spending 5 or 10 percent less than the previous year as a first step toward saving taxpayers some money.”

Paul instituted several cost-cutting measures in his Washington and Texas offices in 2001. He reorganized staff and consolidated office duties, resulting in a smaller payroll. His staff also increasingly used email to communicate with constituents, saving money on mail costs. However, Paul still prides himself on providing first-rate service to constituents.

“I’m especially pleased that we were able to cut costs and still maintain a very high level of constituent service,” Paul concluded. “We continued to organize a series of successful job fairs, and we continued to assist constituents with IRS, Social Security, VA, and other problems. We managed to streamline our office organization while still working hard for our constituents.”

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Paul Urges House Administration to Speed Mail Delivery

August 8th, 2002

Washington, DC: Congressman Ron Paul wants constituent mail delivered to Capitol Hill more quickly, so that his office can provide better service to the people he represents. The House implemented new mail-handling procedures after September 11th, resulting in very slow mail service for member offices.

“My office prides itself on first-rate constituent service, and it’s frustrating to hear from people in the district who sent a letter months ago that we still have not received,” Paul stated. “Since the anthrax scare last fall, mail delivery to House offices has slowed to a crawl. In fact, my office is still getting mail from Christmas! This delay acts as a barrier to effective representation, because constituents cannot have concerns addressed quickly. My office has adapted by using email and faxes whenever possible, but regular mail remains the first choice for many constituents.”

Paul is petitioning the House Administration committee to allow members to opt out of the new irradiation procedures responsible for the lengthy delays. His letter to the committee chairman argues that many House and Senate offices already bypass the new system by having mail sent directly to district offices, without experiencing problems.

“Members need to respond to constituent mail quickly, and we cannot do that with the current system,” Paul concluded. “The House needs to explore alternative methods of getting mail to members, or constituent service will continue to suffer. Congress must be representative, and a bunker mentality prevents constituents from being heard.”

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