Seniors, heads up: You already know there won’t be a cost-of-living increase to your social security checks in 2011.
Not so fast – will Congress come to your rescue?
The House of Representatives has filed H. R. 5987 – – Seniors Protection Act of 2010.
This bill, if approved, would disburse a payment of $250 to each individual drawing social security, SSI, railroad retirement benefits and veteran’s disability or pension benefits. The payment would be distributed to recipients in 2011.
There are 128 House Democrats who have signed onto the bill, which is estimated to cost the government $14 billion.
Will it happen? Maybe.
Why not make this more palatable by tying it to the next SS COLA increase? Maybe in 2012 there will be an increase in SS benefits based on the inflation guidelines. At that point, reduce the increase by the $250 advanced in 2011. Or, make the recovery in steps over two years, 2012 and 2013. At least this recovery structuring will allow any 2011 expenditure to be revenue neutral.
Seniors, consider writing your representatives with your opinion.
Tax Wisdom: One way to reduce taxes is to hold elections every year because there never seem to be tax increases in an election year.