The Washington Times
  • Subscribe
  • Times News Services
  • RSS
  • Mobile Headlines
  • e-edition
  • E-MAIL ALERTS
  • REGISTER
  • LOG IN
  • E-MAIL ALERTS
  • WELCOME
  • Your Profile
  • Log Out
  • Front Page Image
  • Classifieds
  • Autos
  • Real Estate
  • Jobs
  • Special Sections
  • Customer Service
  • Home
  • News
  • Opinion
  • Sports
    • NFL
    • NBA/WNBA
    • MLB
    • NHL
    • Tennis
    • Golf
    • Motorsports
    • Soccer
    • NCAA
    • Olympics
    • Outdoors
    • Other
  • Culture
    • Home & Living
    • Family & Kids
    • Fashion
    • Food
    • Travel
    • Health
    • Washington Visitors
    • Books
    • Military History
    • Life
    • Auto
    • TV Listings
    • Movie Listings
    • Death Notices
    • Entertainment
  • Themes
  • Communities
  • Shopping
    • Stores
    • Coupons
    • Daily Double
    • Promotion
    • How It Works
  • Videos
    • Two Guys
    • Birnbaum on Washington
    • Liz Glover
    • Amanda Carpenter
    • Morning Briefing
    • Documentaries
    • Joe Giganti
    • Video Game Minute
  • Podcasts
    • About Headlines
    • Audio and Radio
    • America's Morning News
  • World
  • National
  • Politics
  • National Security
  • DC Area
  • Business
  • Entertainment
  • Technology
  • Investigations
  • Faith
  • Energy
  • Environment
  • Headlines
  • Citizen Journalism
  • Politics

    Massive bill steals show in health care debate

  • Commentary

    Al Qaeda's prospects

  • Sports

    Slow start dooms Capitals

  • National

    Winfrey: Prayer influenced 2011 exit

  • Politics

    Report: ACORN mismanaged grant money

  • Politics

    Obama's approval rating falls below 50%

  • Local

    Report: D.C. schools chief Rhee mishandled sexual misconduct scandal

Home » News » Politics

Thursday, October 15, 2009

Obama calls for $250 for seniors, veterans

Rate this story

Average 5.00
after 1 votes
Login or register to rate this story

No cost of living increase

  • Font Size -+
  • Print
  • Email
  • Comment
  • Tweet this!
  • Share
  • Article
  • Comments ()
  • Click-2-Listen
  • Videos
Please stand by, images loading!
  • associated press
For the first time since the 1980s, Social Security will dole out more in benefits than it collects in taxes for the next two years. Those deficits will add to the overall federal deficit.

More Politics Stories

  • Military academies lack minority nominees
  • Republican governors: 'Opt out' unworkable
  • ANALYSIS: Obama's global posture bows to delayed gratification
  • Massive bill steals show in health care debate

By Stephen Ohlemacher ASSOCIATED PRESS

"Since the purpose of COLAs is to preserve beneficiaries' purchasing power, the decline in overall prices means that beneficiaries do not need a COLA in January 2010," Kathy Ruffing, a senior policy analyst at the center, wrote in a report this week.

Over the past 12 months, gasoline prices have fallen 29.7 percent and overall energy costs have decreased 21.6 percent, the Labor Department said Thursday.

Ruffing noted that government forecasters don't expect consumer prices to return to 2008 levels until 2011.

Sen. Judd Gregg, R-N.H, called the $250 payments "inappropriate."

"The reason we set up this process was to have the Social Security reimbursement reflect the cost of living," Gregg said.

Some advocates for seniors, however, argue that older Americans spend a disproportionate amount of their incomes on health care costs, which rise faster than consumer prices.

The lack of a cost of living increase triggers several provisions in the law. Among them, the amount of wages subject to Social Security payroll taxes will remain unchanged. The first $106,800 of a worker's earned income is currently subject to the tax.

Also, Medicare Part B premiums for the vast majority of Social Security recipients will remain frozen at 2009 levels. However, premiums for the Medicare prescription drug program, known as Part D, will increase.

Obama's proposal calls for sending $250 payments to Social Security recipients as well as those receiving veterans or 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 of the payments at $13 billion. Obama didn't say how the payments should be financed, leaving that up to Congress. The president is open to borrowing the money, increasing the federal budget deficit, just like Congress did with the first round of stimulus payments.

Obama's proposal has picked up support from key members of Congress, including Senate Majority Leader Harry Reid, D-Nev., and House Speaker Nancy Pelosi, D-Calif.

Several groups that advocate for seniors have also endorsed the $250 payments, including the AARP and the National Committee to Preserve Social Security and Medicare.

One group, The Senior Citizens League, said Social Security recipients would be better off with a 3 percent increase in their monthly payments.

"Although President Obama's call for a one-time payment of $250 will help seniors, it is a distraction since the zero COLA will cost retirees thousands in lost compounding throughout their retirement," said Shannon Benton, executive director of The Senior Citizens League.

The average monthly Social Security payment for all Social Security recipients is $1,094.

[Get Copyright Permissions] Click here for reprint permissions!
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

1 2

Post a comment

There are comments on this article, submit your opinion!

Please login or register to post a comment

Ask a Question

You Report

Do you have another point of view, photos, audio, video or more information about a story?

Top Stories

Most Read

  1. Health bill could get 34-hour reading in Senate
  2. Work site arrests of illegals fall dramatically
  3. KELLNER: New Apple mouse really is 'Magic'
  4. Senate health care bill creates new marriage penalty
  5. PRUDEN: Obama bows, the nation cringes
More Top Stories »
  1. 19 gang members face racketeering charges
  2. EXCLUSIVE: Taliban chief hides in Pakistan
  3. EXCLUSIVE: Hoffman considering recount claim
  4. Md.'s $1 billion in budget cuts not enough
  5. Report: D.C. schools chief Rhee mishandled sexual misconduct scandal

Most Shared

  1. Religious leaders vow civil disobedience on anti-life issues
  2. Report: D.C. schools chief Rhee mishandled sexual misconduct scandal
  3. Senate health care bill creates new marriage penalty
  4. PRUDEN: Obama bows, the nation cringes
  5. Faint Shroud of Turin text proves artifact real, book says
More Top Stories »
  1. EDITORIAL EXCLUSIVE: On terrorists, Justice recused
  2. EDITORIAL: Chicago, Afghan-style
  3. EXCLUSIVE: Taliban chief hides in Pakistan
  4. Socialist or vast expansion?
  5. Unforeseen climate 'crisis'

Most Commented

  1. PRUDEN: The Third World and Obama
  2. Army lacks guidelines to deal with jihadists in ranks
  3. Religious leaders vow civil disobedience on anti-life issues
  4. Senate health care bill creates new marriage penalty
  5. EDITORIAL: Get ready to bomb Iran
More Top Stories »
  1. Dems up pressure on health bill's holdouts
  2. Work site arrests of illegals fall dramatically
  3. EXCLUSIVE: Taliban chief hides in Pakistan
  4. Health bill could get 34-hour reading in Senate
  5. Unforeseen climate 'crisis'

Listen to Washington Times Radio

  • America's Morning News

    with John McCaslin and Melanie Morgan

Question of the day

Do you think Pakistan has done enough to help us find the terrorists who want to hurt the U.S.?

Blogs & Columns

  • Hot Button Blog

    RNC: Breast cancer recommendations may lead to 'rationing'

  • Belief Blog

    Evangelicals OK civil disobedience

  • Out of Context

    Foods that might kill libido

  • On the Fly

    United lifts some 'award' blocking

  • Technology

    Facebook wins round against phishing spammer

  • Redskins 360

    Rookie Williams hurts ankle

  • SNOBlog

    Beyond 'Woody'

Videos

Advertising Links
TWT Store
  • e-edition
  • Print Edition
  • Weekly Washington Times
TWT Affiliates
  • Middle East Times
  • Golf
  • UPI
  • Arbor Ballroom
  • Washington Times Global
  • About TWT
  • Press Room
  • F.A.Q.
  • Work for TWT
  • Advertise
  • Sponsors
  • Contact Us
  • Privacy Policy
  • Site Map

All site contents © Copyright 2009 The Washington Times, LLC.