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Senators push for $250 supplement for seniors
Thursday, October 01, 2009

WASHINGTON -- Seniors collecting Social Security could get a $250 check next year, in lieu of a cost of living increase, if Sen. Bob Casey, D-Pa., and congressional allies get their way.

The Social Security Administration has indicated that it will not give recipients a cost-of-living adjustment next year -- for the first time in 35 years -- because there has been no inflation.

But at a Capitol Hill news conference yesterday, lawmakers said seniors aren't buying electronics and other consumer goods, which have seen prices fall amid the recession, and are instead spending their money on prescription drugs and health care, whose costs have increased considerably.

Sen. Bernie Sanders, I-Vt., and Rep. Pete DeFazio, D-Ore., introduced twin bills Sept. 17, and urged rapid action to give Social Security recipients some relief. Mr. Casey, a co-sponsor of the Emergency Senior Citizens Relief Act, spoke as well, as did Sen. Sheldon Whitehouse, D-R.I., and Rep. Maurice Hinchey, D-N.Y.

"The least that we should do in the midst of a terrible recession -- for older citizens and for families across the country -- is to make sure that we can provide some measure of relief that this legislation provides," Mr. Casey said. "It provides some light in that darkness."

Mr. Sanders said the $14 billion cost will be paid for by imposing Social Security payroll taxes on earnings from $250,000 to $359,000 per year. Workers now pay Social Security taxes on only the first $106,800 of their income.

President Barack Obama pitched the idea of a payroll tax on amounts above $250,000 during his campaign last year, and the proposal drew Republican criticism. Mr. Sanders said the Obama administration is on board with the idea, and congressional leadership has expressed general support. He said there is also an economic benefit to the spending.

"Since seniors living on fixed incomes are most likely to spend this money, our legislation would also provide a stimulus to the economy in the midst of these very difficult times," Mr. Sanders said, adding that this year's stimulus package included Social Security payments to seniors.

The lawmakers and senior advocates said this is a crucial time for aid. According to the National Committee to Preserve Social Security and Medicare, Medicare Part B costs will rise as much as 9 percent in 2010, and Part D costs are projected to grow 11.1 percent per year.

In the long term, Mr. Sanders said, Congress must create a different Consumer Price Index for seniors to better reflect their spending habits and prevent situations where the standard price index is out of synch with seniors' needs.

The 2000 census showed that 15.6 percent of Pennsylvania's population is over age 65, making the state second only to Florida in proportion of seniors. Mr. Casey said he has heard from many of his older constituents about the need for extra help.

"When you consider all the efforts on behalf of banks and financial institutions, all the efforts on behalf of major institutions or financial sectors, this is, I think, pretty straightforward: to try to provide 250 bucks at a pretty tough time for people."

Washington correspondent Daniel Malloy writes the "Pittsburgh On The Potomac" blog exclusively at PG+, a members-only web site of the Pittsburgh Post-Gazette. Our introduction to PG+ gives you all the details.
First published on October 1, 2009 at 12:00 am
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