A Social Security bill that could have sent Social Security individuals a $250 payment was defeated Wednesday within the House. Because Social Security will not have a cost-of-living increase, or COLA, in 2011, lawmakers wanted to throw senior citizens, veterans and the handicapped a $250 bone. Since the bill came with a price tag of $14 billion, Republicans united in competitors. Instead, those on Social Security eventually find themselves seeking a pay day loan when in-need of unexpected money.
Laws not wanting COLA boost
A Democratic bill to write $250 checks for 58 million Social Security recipients was meant to compensate for a second straight year without a cost-of-living increase, otherwise known as a COLA. Voting on the Social Security bill was supposed to go fast. It was on the “fast track” for bills. Bills that are fast-tracked in the House require a two-thirds vote to pass. The tally fell short at 254-153. Twenty-six Republicans said “aye.”. A no vote came from twelve democrats. The onetime payment was something the Obama administration supported. They said that the Cost-of-Living having no boost would make it hard for several getting Social Security.
Why Social Security gets no COLA
With inflation, Social Security COLAs are expected to rise. Social Security last had a COLA increase in 2009 that was set in motion by a jump in gas prices to more than $4 a gallon within the summer of 2008. It was the largest COLA increase that happened in three years with 5.8 percent. Unless consumer prices go above what they’re, COLAs are not legally able to go up. Virtually non-existent inflation in the past two years has suppressed consumer prices and any subsequent Social Security COLAs. Each and 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 taken into consideration
Linking COLAs to consumer prices is something several don’t like the idea of while supporting the Social Security bill. They say that senior citizens, veterans and the disabled can’t function with rates so low. Expanses like medication are used for most of them which is very high. Republicans figured that senior citizens got a large enough Social Security Cost-of-Living increase in 2009 to tide them over for a few years. There was a representative of Rep. David Camp., R-Mich., who said, “There is a responsible way to protect senior citizens without increasing the debt.” Camp will become the chairman of the House Ways and Means Committee in January. He didn’t say how.
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
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