Obama Pushes for Senior's Economic Stimulus

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Wednesday October 14, 2009 · 6:28 PM PDT

2009/10/14 · 18:28

The Social Security Administration will announce that there will be no cost-of-living increase in 2010. This is because inflation rates continue to be in the negative.

However, because Fed inflation rates don't count decreasing home values or food and energy and medicine prices, President Obama is asking Congress to approve one-time payments of $250 - about the standard COLA increase - to seniors, including Social Security and veteran's benefits recipients, the disabled, railroad retirees and retired public employees who don't receive SS.

"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."

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.

AP/HuffingtonPost

Expect the GOP to freak out. Already repubs are taking to the internet to declare that Obama is buying votes. Yes, we are no longer granny-killers; but they assume their grandparents are so dumb and greedy as to sell their votes for $250. I guess this is an improvement?

Of course there is the problem of paying for it. But the cost - 13 billion - might represent 1% of the Iraq war, or a few percents of the various bailouts. To say our grandparents don't deserve this when trillions have been spent in worse ways is disgraceful and dishonest.

And unlike the war's motive, American lives are actually at stake.

This content was created by a Daily Kos Community member.

Make YOUR voice heard!

Comments are closed on this story.