Obama proposes one time payment to SS Recipients-stagnant economy
Due to the down turn in the economy, there will be no Cost of Living Allowance (COLA) this year for Social Security recipients.
President Obama tried to preempt an announcement that there would be no increase for the first time in three decades. He encouraged Congress to provide a one time payment of $250 to recipients yesterday.
This proposal would cost $13 Billion.
While the Administration is trying to take preemptive action to extend Unemployment benefits and funnel money to small businesses in constituencies that are hurting, it is also trying to avoid another stimulus package. Another stimulus package, no doubt would prompt adverse reaction from critics.
The funds required to handle the one time payment to Social Security recipients would be taken from the original stimulus package. Those funds were originally targeted to bail out large corporations.
President Obama on Wednesday attempted to preempt the announcement that Social Security recipients will not get an increase in their benefit checks for the first time in three decades, encouraging Congress to provide a one-time payment of $250 to help seniors and disabled Americans weather the recession.
Obama endorsed the idea, which is expected to cost at least $13 billion, as the administration gropes for ways to sustain an apparent economic rebound without the kind of massive spending package that critics could label a second stimulus act
Many, including President Obama, the AARP and the Social Security Administration itself, are calling for Congress to approve a $250 stimulus payment to older Americans and other groups, including veterans and those receiving disability benefits, to compensate for the lack of a COLA.
"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 said.
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