House denies bill for $250 repayment to Social Security recipients

A Social Security bill that would have sent Social Security individuals a $250 check was conquered Wed within the House. Because Social Security won’t have a cost-of-living increase, or COLA, in 2011, lawmakers wanted to throw senior citizens, veterans and the handicapped a $250 bone. Republicans argued that the $14 billion in deficit investing needed was out of the question. Instead, those on Social Security eventually find themselves looking for a paydayloans when in-need of unexpected money.

Insufficient Cost-of-Living boosts encourage laws

About 58 million individuals on Social Security could have gotten $250 checks if the democratic bill went through. This was written to make up for the COLA not taking place for the second straight year, or the cost of living increase. Voting on the Social Security bill was designed to go fast. It was on the “fast track” for bills. The House has to provide a two thirds vote on bills. This is just if they’re in the fast track. The tally fell short at 254-153. There were only twenty-six republicans that votes yet. Twelve Democrats said “nay.”. The Obama administration supported the one-time payment, claiming that Social Security recipients faced hard times without a Cost-of-Living boost.

Social Security not getting current Cost-of-Living

There is usually a rise of Social Security COLAs with inflation. This is supposed to be automatic. In 2009, there was a COLA boost for Social Security. This was because within the summer of 2008, gas prices were over $4 a gallon. The COLA was at 5.8 percent. In 27 years there hadn’t been a Cost-of-Living that large. You can’t legally raise COLAs without consumer prices increasing. This is what the law requires. The Social Security COLAs have not gone up within the past 2 years because there has been no inflation and consumer prices haven’t changed. About $1,072 is collected by Social Security recipients each month.

Several question the efficiency of COLAs

Linking COLAs to consumer prices is something many don’t like the idea of while supporting the Social Security bill. They say that seniors, veterans as well as the handicapped cannot function with rates so low. There’s a lot more that has to be paid for medication than other things. This is why it is hard for them to get by as well. The increase in COLA in 2009 for Social Security was enough for seniors 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 did not say how this was.

Articles cited

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