Obama Senior Bonus

[41magsnub]

Please Mr President, do not borrow against my future income to give token payments to the folks you hope will vote D in the next round of elections...

http://apnews.myway.com/article/20091015/D9BB77S00.html


Obama calls for $250 payments to seniors
 Email this Story

Oct 14, 8:59 PM (ET)

By STEPHEN OHLEMACHER

Google sponsored links
Retirement Advice - For Smart Retirement Advice - Visit A Commonwealth Financial Planner!
www.CommBank.com.au
 
Disability Benefits Help - Apply for Social Security Disability. Free case evaluation.
SocialSecurityDisabilityHelp
 

WASHINGTON (AP) - President Barack Obama called on Congress Wednesday to approve $250 payments to more than 50 million seniors to make up for no increase in Social Security next year. The Social Security Administration is scheduled to announce Thursday that there will be no cost of living increase next year. By law, increases are pegged to inflation, which has been negative this year.

It would mark the first year without an increase in Social Security payments since automatic adjustments were adopted in 1975.

"Even as we seek to bring about recovery, we must act on behalf of those hardest hit by this recession," Obama said in a statement. "This additional assistance will be especially important in the coming months, as countless seniors and others have seen their retirement accounts and home values decline as a result of this economic crisis."

Obama's proposal is similar to several bills in Congress. The $250 payments would also go to those receiving veterans benefits, disability benefits, railroad retirees and retired public employees who don't receive Social Security. Recipients would be limited to one payment, even if they qualified for more.

The White House put the cost at $13 billion. Obama said he would not allow the payments to come out of the Social Security trust funds, further eroding the finances of the retirement program. Social Security already is projected to pay out more in benefits than it collects in taxes in each of the next two years.

However, Obama did not offer any alternatives to finance the payments. A senior administration official said Obama was open to borrowing the money, increasing the federal budget deficit. The official, who requested anonymity, was not authorized to speak on the record.

Obama also announced Wednesday that the IRS would soon issue tax guidance preventing reductions in contribution limits for certain retirement funds, including 401(k) plans and Individual Retirement Accounts. There has been concern among some in the financial industry that federal law could require the limits to be reduced because inflation will be negative this year.

The $250 payments would match the ones issued to seniors earlier this year as part of the massive economic recovery package enacted in February. Several key members of Congress have said they are open to providing relief to seniors to make up for no increase in Social Security payments.

"We're looking at a way to address it," said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, which oversees Social Security. "I'm not sure what the exact answer is yet, but we're looking at ways to address that."

Senate Majority Leader Harry Reid, D-Nev., said he supports the $250 payments, as did Rep. Charles Rangel, D-N.Y., chairman of the Ways and Means Committee, which has jurisdiction over Social Security in the House.

Sen. Bernie Sanders, an independent from Vermont, has introduced a bill calling for similar payments.

"I think that the Obama administration and many members of Congress understand that we simply can't turn our backs on senior citizens," Sanders said.

Other lawmakers said seniors shouldn't get the extra payments because the formula doesn't call for it.

"I think it would be inappropriate," said Sen. Judd Gregg, R-N.H. "The reason we set up this process was to have the Social Security reimbursement reflect the cost of living."

Social Security payments increased by 5.8 percent in January, the largest increase since 1982. The big increase was largely because of a spike in energy costs in 2008.

Inflation has been negative this year largely because energy prices have fallen. Gasoline prices have dropped 30 percent over the past year while overall energy costs have dropped 23 percent, according to the Bureau of Labor Statistics.

Social Security payments, however, cannot go down. The average monthly Social Security payment for retirees is $1,160.

Advocacy groups said the payment will be welcomed by seniors hit hard by falling home values and shrinking investment portfolios.

"The likelihood of losing an average annual COLA increase of about $200 to $300 in 2010 may sound like no big deal to some, but for millions of seniors who've already seen a third of their Social Security eaten up by health care costs, this proposed COLA relief could truly make the difference" said Barbara B. Kennelly, a former Democratic member of Congress from Connecticut who now heads the National Committee to Preserve Social Security and Medicare.

AARP CEO A. Barry Rand said, "For nearly 35 years, millions of Americans have counted on an annual increase in their monthly Social Security checks to make ends meet."

[Standing Wolf]

I'm still voting libertarian. In the unlikely event any money shows up in my mail box, I'll spend it at my friendly local gun shop.

[Gewehr98]

I dunno.  I can go either way with this one.

I used my $250.00 Veteran's Bonus to buy gun stuff - mainly handloading components. 

So thanks, Mr. President!   

[Ben]

I'm mostly curious as to what the politicians who have stated that this is a great idea thought of the Bush "rebates".

[Monkeyleg]

You can't be serious, Gewehr98.

[Jocassee]

"Even as we seek to bring about recovery, we must act on behalf of those hardest hit by this recession,"

There is no curse in Elvish, Entish, or the tongues of man...

[41magsnub]

As I think about this, it is a very clever political ploy.  It gets the fiscal conservatives to come out against "more money to seniors and veterans" which can be used to bash them over the heads come election time.  It does not really matter if these payments go through or not...

[Chester32141]

I'm still trying to figure out how they can say the cost of living went down ... I'm on a fixed income which includes Social Security Disability.  I'm a real penny pincher, mainly because I have to be.  In the past year my income has gone from being comfortable because of my extreme frugality to damned awful hard to live on and I don't foresee it getting any better ... Aside from gasoline, what else has decreased in price over the past 12 months ... certainly none of the necessities like food or electricity ... I'll be happy to get anything they send me but it sure as hell won't buy my vote ...

[AZRedhawk44]

People on the talk radio station are saying they're gonna give the $250 to anti-Democrat/anti-Obama candidates for 2010.

[Jocassee]

People on the talk radio station are saying they're gonna give the $250 to anti-Democrat/anti-Obama candidates for 2010.

Eh?

[Gewehr98]

Well, I'm serious in that I actually spent the $250 VA bonus earlier this year on reloading supplies.

It was direct-deposited into my account along with my monthly VA disability stipend, so that's about as serious as it gets.

I figured I could do something symbolically like send the check back to The American Taxpayers via 1600 Pennsylvania Avenue, or use it on something that would not endear myself to the current occupant of the Oval Office.  I chose the latter.

I understand this Senior Bonus will be offered in lieu of the yearly COLA adjustment to Social Security.  Whether $250/yr equates to what the COLA adjustment would've been, I don't know.

On principal, it's another big sucking sound aimed at taxpayers.  On the flip side, having paid into Social Security for over 30 years, I'd like to see it remain somewhat viable when I am eligible come age 67-70.  Of course, one can poop in one hand and wish in the other, and see which hand fills up first...    (That's why I'm working hard towards my second retirement!)

[Desertdog]

I will use my $250 to buy tires for my car, and when election time comes around, I will not vote for the Democrats.

[dogmush]

If I may vent my spleen a little.

I hope you enjoy your new snow tires or whatever, because I will spend the next approx. 3 weeks paying for them.  I'd like to buy new tires myself, but between paying for current senior's "fixed income" and saving for my own retirement (which being about 35 years from now, no one sane thinks I'll see a penny of the OASDI) I can't afford it.

I'm a little bitter at being forced by law to give $95 A WEEK to seniors, while simultaneously being told to be responsible and plan for my own retirement.

Now the same law that takes my money is inconvenient to the politicians, so we can just go around it?  COLA's are tied to inflation for a reason.  Don't like it? Dip in to your 401K or IRA! 

That being said, I'm OK with tax dollars going to VA disability (those that didn't fake it; My office has a faker), as those folks earning potential was lowered by service to the taxpayers.

Retirement is your own problem though.

There, I feel better now.

[Ben]

I hope you enjoy your new snow tires or whatever, because I will spend the next approx. 3 weeks paying for them.  I'd like to buy new tires myself, but between paying for current senior's "fixed income" and saving for my own retirement (which being about 35 years from now, no one sane thinks I'll see a penny of the OASDI) I can't afford it.

I'm not exactly sure why you're mad at him for using money that was essentially stolen from him without his consent. SS is projected to no longer be viable by the time I retire, but if it is, you can bet I'll try and reclaim as much of the stolen money as I can. If I can't do so, I'm not going to begrudge someone else that's able to get some of their stolen money back.

The entity to be mad at is the government and a large segment of the voting populace that is denying your and my right to at least choose between SS and our own retirement vehicle.

[Marnoot]

I'm not exactly sure why you're mad at him for using money that was essentially stolen from him without his consent. SS is projected to no longer be viable by the time I retire, but if it is, you can bet I'll try and reclaim as much of the stolen money as I can. If I can't do so, I'm not going to begrudge someone else that's able to get some of their stolen money back.

The entity to be mad at is the government and a large segment of the voting populace that is denying your and my right to at least choose between SS and our own retirement vehicle.

This. I had no problem spending my "rebate", I had no problem accepting a federal grant in college, and I'll take all the SS I can get if it exists when I retire due to the fact that it's a mere fraction of what was taken from me. If I didn't work due to disability, etc., I'd really not want to take any of that because then it is someone else's money. That doesn't reflect on whether I believe such things (rebates, grants, etc) should exist in the first place; that's not the government's place. I despise the gun-to-the-head nature of SS; I could do much better if allowed to invest my SS contributions on my own.

[dogmush]

I'm not really mad at him.

I am mad at the system.

I actually do hope he enjoys the tires (or whatever else one buys on SS), one assume he needs and/or wants them.

However, I'm very frusterated that the folks I talk to on SS don't seem to understand that the .gov is taking this money from somewhere.  The fact that they stole money from you and gave it to old folks when you were working is regretable, and you should be mad, but it doesn't make me feel any better about my money getting taken every week.

Heck take what you can get, It's not like the .gov's going to give it back to me or my generation if you turn it down.  But as part of the generation financing it right now, I'd like to reserve the right to whine about it.

And try not to think about what rate of return I could get on that money.

In addition I'm more then a little peeved about Obama's attitude that he can just go around the law (COLA/Inflation joining in this case) when it's politically convienent for him.

But mostly I'm just whineing, because I'd really like to see SS shut down.

[Headless Thompson Gunner]

If I may vent my spleen a little.

I hope you enjoy your new snow tires or whatever, because I will spend the next approx. 3 weeks paying for them.  I'd like to buy new tires myself, but between paying for current senior's "fixed income" and saving for my own retirement (which being about 35 years from now, no one sane thinks I'll see a penny of the OASDI) I can't afford it.

I'm a little bitter at being forced by law to give $95 A WEEK to seniors, while simultaneously being told to be responsible and plan for my own retirement.

Now the same law that takes my money is inconvenient to the politicians, so we can just go around it?  COLA's are tied to inflation for a reason.  Don't like it? Dip in to your 401K or IRA!  

That being said, I'm OK with tax dollars going to VA disability (those that didn't fake it; My office has a faker), as those folks earning potential was lowered by service to the taxpayers.

Retirement is your own problem though.

There, I feel better now.

Amen, brother!

I think social security is a disgrace.  It's simple theft.  No amount of government institutionalization can whitewash it.  Every dime paid out for SS will come out of the livelihoods of the young.  "Beneficiaries" will improve their lives by diminishing their children's lives, and that's an embarrassment in a country like the United States.

Want new tires?  Go buy some with your own money.  Keep your hands out of my pockets.  My wife needs some new tires, too, ya know, and there's no defensible reason we should have to buy your tires for you before we can buy some of our own.

Retirees have had their entire lifetimes to build up a comfortable savings.  If they chose not to do so, that's their problem and nobody else's.  Retirement (and new tires!) is a privilege, not a right.  If you want it you have to go out and earn it.

[Perd Hapley]

I'm a little bitter at being forced by law to give $95 A WEEK to seniors, while simultaneously being told to be responsible and plan for my own retirement.

Mr. mush,

Your pithy rebuke of socialism is timeless and should be read by every politician, every voter and anyone who receives Social Security or similar government subsidies.  Thank you for being the voice of a movement.

fistful

[Chester32141]

I'm 55 and collect Social Security Disability due to complications from multiple cancer related surgeries ... at this point I've lived one year past my life expectancy ... I was 15 when I got my first job that had social security withheld so that makes nearly 40 years of paying in ... while I feel for those who are paying now and may never see a return, it's not those of us who are finally getting a little of our input back that you have a gripe with ... It's not like you are the first generation to pay into Social Security ... Having spent many of those years self employed I paid both my half and the employers half of Social Security ...   

On the subject of Medicare ... last fall I spent 5 weeks in intensive surgical care.  The doctors did not expect me to survive the surgery I needed.  Last October a team of four surgeons operated on me for six hours.  Thankfully for me it was successful.  Medicare offered the team $2,000 for their services and subsequently refused all payment when the amount was appealed ... They claimed there was no evidence that the surgery was necessary ... 

My goal is too live as long as possible in hopes of spending all the $$ you young'uns are depositing for me ... I'd say thanks but y'all are too busy whining to hear me ... 

Oh what the Heck ... thanks y'all ... 

[Headless Thompson Gunner]

I'm 55 and collect Social Security Disability due to complications from multiple cancer related surgeries ... at this point I've lived one year past my life expectancy ... I was 15 when I got my first job that had social security withheld so that makes nearly 40 years of paying in ... while I feel for those who are paying now and may never see a return, it's not those of us who are finally getting a little of our input back that you have a gripe with ... It's not like you are the first generation to pay into Social Security ... Having spent many of those years self employed I paid both my half and the employers half of Social Security ...    

The problem is that you oldsters have already spent all of the money you paid into social security.  It's gone.  Every dime SS collected since the 1980's was immediately handed over to the treasury and spent.  You've already received all the benefit you're ever going to get from the money you paid in.

You can't have your cake and eat it, too.  

[Chester32141]

The problem is that you oldsters have already spent all of the money you paid into social security.  It's gone.  Every dime SS collected since the 1980's was immediately handed over to the treasury and spent.  You've already received all the benefit you're ever going to get from the money you paid in.

You can't have your cake and eat it, too.  

So I guess you kids can whine about the return you could get on your money but those of us that paid in for 40 years aren't allowed to get back more than we put in ... your complaint is both priceless and revealing ...  

"You've already received all the benefit you're ever going to get from the money you paid in."

Don't bet on it ... I intend to eat my cake and yours too ...  

What you chillen's don't realize is that this is just another way for policticians to turn one generation against another ... the real enemy is the .Gov not those of us who are collecting on our "investment ...  "

[Headless Thompson Gunner]

So I guess you kids can whine about the return you could get on your money but those of us that paid in for 40 years aren't allowed to get back more than we put in ... your complaint is both priceless and revealing ...  

Don't confuse a government program with an investment.

"You've already received all the benefit you're ever going to get from the money you paid in."

Don't bet on it ... I intend to eat my cake and yours too ...  

That may not be a problem from your point of view, but it is from mine.

[FTA84]

The problem is that you oldsters have already spent all of the money you paid into social security.  It's gone.  Every dime SS collected since the 1980's was immediately handed over to the treasury and spent.  You've already received all the benefit you're ever going to get from the money you paid in.

You can't have your cake and eat it, too.  

This is among (one of the many reasons) SS will never be fixed.  At some point, the politicians sold everyone that they were "investing" their money when they were doing no such thing.  All investments were immediately spent on pork projects and social engineering.

People paid in and want their money back out -- the future money has already been stolen -- it is just a matter of time until this game of musical chairs ends and some generation will have to lose the money they put in.

If you were a politician, would you risk your position (= throw away all that money you spent to get elected) to take responsibility for fixing a system you didn't break? Or, would you just try to keep it going so blame fell on the next guy?

[Chester32141]

That may not be a problem from your point of view, but it is from mine.

Oh well ... I guess that's just too bad for you isn't it ... tell you what ... next time I take my massive disability check to the bank I'll say "Thanks Headless Thompson Gunner and Dogmush for your pissant contribution " ...

[Gewehr98]

The problem is that you oldsters have already spent all of the money you paid into social security.  It's gone.  Every dime SS collected since the 1980's was immediately handed over to the treasury and spent.  You've already received all the benefit you're ever going to get from the money you paid in.

You can't have your cake and eat it, too. 

I don't buy that for one minute.

It does speak of a double standard, HTG.  More than just the current generation have paid into SS, with no other retirement investment choice offered for those appropriated funds, so they're definitely entitled to recoup that which was forcibly taken from them over time.  Telling them they spent it already and don't deserve another dime doesn't really point at the root cause of the problem, which was poor fiscal management by the people taking said moneys.

That would be akin to me saying you should only get a few years' worth of SS, because that's all you deserve, and you should've salted away even more money on the side, shame on you for not wisely investing in anticipation of the demise of SS.  SS is not a paltry deduction from one's paycheck, particularly over one's working lifetime, so I don't begrudge anybody discussing their entitlement to SS benefits.  SS wasn't always insolvent, only relatively recently has its lack of long-term viability become visible to the average American. Not everybody's in a good position to build up a healthy 401K on the side, either.  That's sad, but that's life.  I dipped into my military pension quite heavily when I got laid off last February, and that was a real eye-opener for me.  As I said before, I don't anticipate having a dime of SS sent my way at age 67, and there are days when I wonder if Uncle Sam will default on military pension payments, too.  It doesn't mean I am hostile to my elders who are receiving SS benefits, because it was faulty by design when it comes to passing debt on to future generations. It's not as if they were given a choice with respect to the payroll deductions...