Bill delivering $250 to people on Social Security fails in House

If the Social Security bill would have passed the House, Social Security individuals could have received one $250 check in addition to their regular benefits. The bill is a response to the absence of a Social Security cost-of-living boost (COLA) in 2011. The logic was that a one-time $250 payment would somehow make up the difference. Republicans contended the $14 billion in deficit investing required was out of the question. Rather, those on Social Security have discovered themselves looking for a payday advance when in-need of unexpected cash. Article resource – House rejects bill for $250 payment to Social Security recipients by Money Blog Newz.

COLA boost not taking place

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 intended to go fast. It was on the “fast track” for bills. Bills that are fast-tracked within the House require a two-thirds vote to pass. With a 254-153 vote, the bill did not pass. There were only twenty-six republicans that votes yet. Twelve Democrats said “nay.”. The onetime payment was something that the Obama administration supported. They said the Cost-of-Living having absolutely no increase would make it hard for many getting Social Security.

Social Security not getting recent Cost-of-Living

With inflation, Social Security COLAs are expected to rise. Due to gas prices going over $4 a gallon in 2008, the Social Security had a COLA boost in 2009. The Cost-of-Living was at 5.8 percent. In 27 years there hadn’t been a COLA that large. Unless consumer prices go above what they are, COLAs aren’t legally able to go up. There has been absolutely no change in consumer prices in the last two years. That means that there have been no Social Security COLAs without any change in consumer prices. Every month, those getting social security get over $1,000. It is closer to $1,072 on average.

Several worried COLAs don’t function

The needs of senior citizens, veterans and the disabled cannot be met with Social Security benefits, Cost-of-Living is going to be linked to consumer prices. There’s a lot more that has to be paid for medication than anything else. This is why it’s hard for them to get by as well. Many of the Republicans argue the 2009 Social Security increase in Cost-of-Living was plenty. Seniors ought to be okay for a while. 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 senior citizens without increasing the deficit.” How to do this was not explained. The thought was not completed.

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