GOP senator Ron Johnson says he wants to 'coax' seniors out of retirement so they can 'earn a few extra bucks' and ease the labor shortage

GOP Sen. Johnson said that he'd like to "coax" seniors out of retirement to ease the labor shortage.

"If they want to get back and earn a few extra bucks, let them start working and don't charge them payroll tax," he said.

Johnson has also suggested putting Social Security and Medicare on the chopping block every year.

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Republican Sen. Ron Johnson of Wisconsin said in a recent tele-town hall that he's in favor of enticing retirees to jump back into the workforce to help fix a persistent labor shortage.

"There are a number of innovative ideas I would support. Former Sen. Phil Gramm came to the Senate, we were talking about our labor shortage," Johnson said on Wednesday, referring to a past GOP senator from Texas. "One of his suggestions was to coax seniors that could re-enter the workforce — don't charge them payroll tax. They're not paying it anyway. So if they want to get back and earn a few extra bucks, let them start working and don't charge them payroll tax."

Payroll taxes are levied on workers' earnings and employers to finance Social Security and Medicare. Suspending or eliminating them would likely trigger Democratic opposition since that removes an important funding stream for both safety-net programs. It would also allow workers to pocket more of their paycheck during a stretch of high inflation.

Johnson's comments were first posted on Twitter by Heartland Signal, a liberal news site. A spokesperson for the Wisconsin Republican's office said he was responding to a constituent and retiree who asked about returning to work without incurring any penalties.

"The senator is happy to reward seniors who want to go back to work," Alexa Henning, a Johnson spokesperson, said in a statement to Insider. "Especially since there is a severe labor shortage in Wisconsin and the labor force participation rate continues to languish."

"The senator wants to help seniors who are on a fixed income being crushed by Biden's inflation and the businesses that are unable to fill job openings across the state," Henning said.

Johnson is an ardent conservative seeking a third term in the US Senate. He's locked in a tough re-election battle against Wisconsin Lt. Gov. Mandela Barnes. The Democratic challenger seized on Johnson's comments to portray him as out of touch with older Wisconsinites.

"Ron Johnson's solution to the labor shortage: send seniors back to work," Barnes wrote on Twitter. "Why is Ron Johnson waging a war on our seniors and the benefits they've worked towards their entire lives?"

Johnson is no stranger to political blowback. Early last month, he suggested putting Social Security and Medicare on the chopping block annually in Congress to "fix" the programs. The Milwaukee Journal Sentinel recently reported that Johnson said that Social Security was "set up improperly" and it'd be more useful to invest the money into the stock market during a campaign speech.

He also proposed attempting to repeal the Affordable Care Act if Republicans retook control of Congress in the November midterms.

Employers continue hiring at a steady pace. The American economy added 315,000 jobs in August, Insider's Ben Winck and Madison Hoff reported. But job openings still outpace the number of available workers.

Economists have identified numerous factors to explain the labor shortage. People moved away from locations with open positions; parents haven't been able to return to work due to a lack of childcare; and available roles might not be the right fit — in terms of skills or pay — for people looking to switch jobs.

Other Republicans have also waded in with potential solutions to alleviate the scarcity of workers. Senate Minority Leader Mitch McConnell said in July that the labor shortage would end only after workers exhausted the savings they built up from federal relief efforts during the pandemic.

Insider's Juliana Kaplan contributed to this report.