Oct 15, 2010

Vote On $250 Payments To Social Security Beneficiaries -- After The Election

The Associated Press is reporting that the House of Representatives will vote on Social Security Subcommittee Chairman Earl Pomeroy's plan for a $250 bonus payment to each Social Security beneficiary since there will be no cost of living adjustment (COLA) this year. The vote will come in the lame duck session of Congress after the election.

I am unable to comprehend why Democrats did not schedule this vote done before the election. I have to guess that Representative Pomeroy pressed for a vote before the election.

7 comments:

Anonymous said...

So..the LAW stipulates that recipients are NOT entitled to an increase, we have a TRILLION+ deficit, the Democrats want to and will vote for a bonus anyway, and you think the only problem is the timing of the vote?

Nancy Ortiz said...

The problem is the unaddressed issue of what to do to adjust SS benefits in periods of DEflation. The COLA is designed to address the only type of "flation" most people have ever experienced-- INflation.

In defationary periods, however, some costs continue to rise and these costs are not addressed in the CPI, which is weighted toward the population of young, urban workers. So, the discussion now about whether to make a token payment of $250.00 misses the point. The real issue is whether the SS benefit annual adjustment should be based on another price index which currently exists and takes the cost of medical care and related expenses. Medical care and related expenses are climbing now at about an 7% annual rate, compounded. Bought any Lipitor lately? QED.

And, for the five millionth time, Social Security is paid for by its own independent revenue stream (FICA/HI taxes) and is unrelated to the budget as a matter of law. Benefit payments are not included in the annual budget passed by Congress. So, just to be clear, the
deficit has NOTHING TO DO WITH SOCIAL SECURITY BENEFITS. NOTHING. AT. ALL. Nancy Ortiz

Anonymous said...

I'm a democrat. I agree in part with the first comment. But what about the republicans contiuation of bush tax cuts which help wealthy corporations who are increasing outsourcing jobs. That should be a primary concern to social security beneficiaries(tax revenue).

Anonymous said...

Who writes the law, Anon 1?

Don Levit said...

SS beneficiaries' median income has increased dramatically over the last 30 years, while median household incomes below 65 have stagnated.
Ten % of SS beneficiaries live in poverty, while 25% of children do so.
Can you document that SS and Medicare has their own dedicated revenue stream?
How could that be if the FICA taxes go into the Treasury?
All benefits are paid out of the Treasury. The funding for SS and Medicare is no different than the funding for Medicaid and food stamps - through general revenues and debt.
Don Levit
Don Levit

Anonymous said...

"So, just to be clear, the
deficit has NOTHING TO DO WITH SOCIAL SECURITY BENEFITS. NOTHING. AT. ALL."

Yeah, but giving everyone $250 sure as hell does.

The formula is set by law and this year and last year it didn't go up based on the formula. Why have it if Congress is going to override the law if benefits don't go up.

Now I wonder how this is going to affect Medicare Part B, because I'm sure it's going to go up from this year's $110.50 and most people are still going to only be paying $96.50. I believe the premiums help to fund the Part B program.

Nancy Ortiz said...

Y'all--Mr. Levit is wrong. For detailed discussions and explanations of why he is wrong, go to the Angry Bear blog and read comments on this subject by Bruce Webb, Dale Coberly, Dan Crawford et al. Nancy Ortiz