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Jan 31, 2008

Senate Finance Committee Version Of Economic Stimulus Package

The Senate Finance Committee has reported out an economic stimulus different than that passed by the House of Representatives. In the Senate Finance Committee version the following individuals would be eligible for rebates:
(1) The sum of an eligible individual’s: (1) earned income (as defined for purposes of the earned income credit); and (2) social security benefits must be at least $3,000; or
(2) The eligible individual has a net income tax liability of at least $1
This would allow virtually all recipients of benefits under Title II of the Social Security Act a rebate. I had been uncertain of this, since press reports had emphasized that the Senate Finance version of the economic stimulus package would give rebates to "seniors" on Social Security. Of course, there are many drawing disability and survivors benefits from Social Security who are not "seniors."

The Senate Finance bill would exclude almost all Supplemental Security Income (SSI) only recipients.

I have been unable to determine whether the rebate checks would be counted as income for purposes of SSI. If so, concurrent recipients of both Title II and SSI benefits would receive a rebate check, but would then lose most, if not all of it, because it would reduce their SSI benefits. In fact, they could actually end up worse off if the rebate check were enough to knock them out of Medicaid altogether for a month.

1 comment:

  1. The plan provides as follows:

    The refundable portion of the credit does not constitute income and is not treated as
    resources for purposes of determining eligibility or the amount or nature of benefits or assistance
    under any Federal program or any State or local program financed with Federal funds.

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