Monday, December 13, 2010

House states no $250 bonus for Social Security receivers

If the Social Security bill could have passed the House, Social Security individuals could have received one $250 payment in addition to their regular benefits. The bill is a response to the absence of a Social Security cost-of-living increase (COLA) in 2011. The logic was that a one-time $250 payment would somehow make up the main difference. As the bill came with a price tag of $14 billion, Republicans united in resistance. Rather, those on Social Security have found themselves seeking a payday advance when in-need of unpredicted cash. Article resource – House rejects bill for $250 payment to Social Security recipients by Money Blog Newz.

COLA boost starts laws going

A Democratic bill to write $250 checks for 58 million Social Security individuals was intended to compensate for a second straight year without a cost-of-living increase, otherwise known as a COLA. The “fast-track” procedure was the plan for the Social Security bill when it came to voting. The House has to give a 2 thirds vote on bills. This is just if they are in the fast track. It didn’t pass. T he vote was at 254-153 too. Voting yes was uncommon in republicans. Only 26 votes were a yes. Twelve Democrats said “nay.”. The onetime payment was something that the Obama administration supported. They said the Cost-of-Living having no boost would make it hard for many getting Social Security.

The lack of Cost-of-Living with Social Security

Social Security COLAs are supposed to rise automatically with inflation. Because of gas prices going over $4 a gallon in 2008, the Social Security had a Cost-of-Living boost in 2009. The COLA was at 5.8 percent. In 27 years there hadn’t been a COLA that large. Law says that COLAs don’t kick in unless consumer prices rise above what they were the year before. Virtually non-existent inflation within the past 2 years has suppressed consumer prices and any subsequent Social Security COLAs. On average, Social Security individuals collect $1,072 a month.

Taking into consideration the effectiveness COLAs have

Supporters of the Social Security bill said that linking COLAs to consumer prices doesn’t adequately adjust Social Security benefits to match the needs of seniors, veterans and the disabled. Expanses like medication are used for most of them which is very high. Several of the Republicans argue that the 2009 Social Security increase in COLA was plenty. Senior citizens should be okay for a while. A spokesman for Rep. David Camp, R-Mich., who becomes the chairman of the House Ways and Means Committee in Jan, said “There is a responsible way to protect senior citizens without increasing the deficit.” He did not say how this was.

Data from

Bloomberg

bloomberg.com/news/2010-12-08/house-bill-to-give-seniors-250-is-defeated.html

NASDAQ

nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201012081443dowjonesdjonline000477&title=house-defeats-attempted-250-payment-to-seniorsveterans

CNN Money

money.cnn.com/2010/12/08/retirement/social_security_payment/index.htm



No comments:

Post a Comment