House Denies Bill For $250 Repayment To Social Security Recipients

A Social Security bill that could have sent Social Security individuals a $250 payment was defeated Wednesday in the House. The bill is a response to the absence of a Social Security cost-of-living increase (COLA) in 2011. The reasoning was that a one-time $250 payment would somehow make up the main difference. Republicans argued that the $14 billion in deficit investing required was unthinkable. Instead, those on Social Security eventually find themselves seeking a payday loan when in-need of unexpected money.

Cost-of-Living boost not happening
About 58 million individuals on Social Security would have gotten $250 checks if the democratic bill went through. This was written for making up for the COLA not occurring for the second straight year, or the cost of living increase. The "fast-track" procedure was the plan for the Social Security bill when it came to voting. The House has to give a two thirds vote on bills. This is just if they are in the fast track. With a 254-153 vote, the bill didn't pass. Twenty-six Republicans said "aye.". Twelve Democrats said "nay.". The Obama administration said that Social Security recipients could have a difficult time without the additional COLA and supported the onetime payment.
Social Security not getting all the COLA
Social Security COLAs are designed to rise automatically with inflation. Social Security last had a Cost-of-Living boost in 2009 that was set in motion by a jump in gas prices to more than $4 a gallon in the summer of 2008. It was the largest Cost-of-Living increase that occurred in three years with 5.8 percent. Unless consumer prices go above what they are, COLAs aren't legally able to go up. The Social Security COLAs haven't gone up in the past 2 years simply because there has been no inflation and consumer prices have not changed. On average, Social Security recipients collect $1,072 a month.
Taking into thought the efficiency COLAs have
The needs of seniors, veterans as well as the handicapped cannot be met with Social Security benefits, Cost-of-Living is going to be linked to consumer prices. A greater portion of their incomes goes toward expenditures for instance medications, which are rising in cost at a much higher rate than inflation. The increase in Cost-of-Living in 2009 for Social Security was enough for senior citizens to get by for a while, suggest Republicans. 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 seniors without increasing the debt." He didn't say how.
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

By: Barbara Coswell

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