House claims absolutely no $250 extra for Social Security beneficiaries

A House bill that could have approved a one-time $250 check to senior citizens, veterans as well as the disabled that collect Social Security was defeated in the House Wednesday. Simply because Social Security will not have a cost-of-living boost, or COLA, in 2011, lawmakers wanted to throw seniors, veterans as well as the handicapped a $250 bone. Since the bill came with a price tag of $14 billion, Republicans united in resistance. Instead, those on Social Security eventually find themselves seeking a payday loan when in-need of sudden money.

Laws prompted by insufficient COLA increase

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. A two-thirds vote is needed on the fast track for bills in the House. The tally fell short at 254-153. There were only twenty-six republicans that votes yet. An absolutely no vote came from twelve democrats. The onetime repayment was something the Obama administration supported. They said the Cost-of-Living having no boost would make it hard for many getting Social Security.

Social Security not getting recent COLA

Social Security COLAs are intended to rise automatically with inflation. Because of gas prices going over $4 a gallon in 2008, the Social Security had a COLA boost in 2009. The COLA was at 5.8 percent. In 27 years there hadn’t been a COLA that large. Law requires that COLAs don’t kick in unless consumer prices rise above what they were the year before. The Social Security COLAs have not gone up in the past 2 years because there has been absolutely no inflation and consumer prices have not changed. Every month, those getting social security get over $1,000. It’s closer to $1,072 on average.

Whether or not COLAs are efficient being considered

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 handicapped. Expanses like medication are used for most of them which is very high. The boost in COLA 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 January, said “There is a responsible way to protect senior citizens without increasing the deficit.” He did not say how.

Citations

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