Social Security makes it official: No COLA
October 15th, 2009 . by TexasFredSocial Security makes it official: No COLA
WASHINGTON - There will be no cost of living increase for more than 50 million Social Security recipients next year, the first year without a raise since automatic adjustments were adopted in 1975.
Blame falling consumer prices. By law, cost of living adjustments are pegged to inflation, which is negative this year, the government said Thursday, because of lower energy costs. Social Security payments do not go down, even when prices drop.
The Obama administration, meanwhile, is pursuing a different way to boost recipients’ income. On Wednesday, President Barack Obama called for a second round of $250 stimulus payments for seniors, veterans, retired railroad workers and people with disabilities.
The payments would match the ones issued to seniors earlier this year as part of the government’s economic recovery package. The payments would be equal to about a 2 percent increase for the average Social Security recipient.
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Social Security makes it official: No COLA
Social Security has been robbed blind America! Robbed by politicians that needed the money for *other* projects, robbed by those that are drawing Social Security and aren’t really disabled, and robbed by those that didn’t pay into Social Security all of their lives.
Mismanagement and abuse. That is the heritage of Social Security. And I offer this to my readers, I didn’t do the math, I am re-posting this as it was received. Enjoy it for what it’s worth or not, makes no difference to me, but the rest of this post makes more sense than anything I have seen in a very long time!
Compare the lives of ‘JOE LEGAL’ and ‘JOSE ILLEGAL’
These two families appear to be very similar. Both families have 2 parents, 2 children and live in California.
“Joe Legal” works in construction, has a Social Security Number, and makes $25.00 per hour and he has payroll taxes deducted.
“Jose Illegal” also works in construction, has NO Social Security Number, and gets paid $15.00 per hour cash “under the table”.
Joe Legal… $25.00 per hour x 40 hours = $1000.00 per week = $52,000 per year. Now take 30% away for state and federal tax. Joe Legal now has $31,231.00.
Jose Illegal… $15.00 per hour x 40 hours = $600.00 per week = $31,200.00 per year. Jose Illegal pays no taxes. Jose Illegal keeps all the cash he earns, = $31,200.00.
Joe Legal pays for Medical, Dental and Vision Insurance with limited coverage …$1000.00 per month = $12,000.00 per year. Joe Legal now has $19,231.00.
Jose Illegal has Obama’s Socialized Heath Care which includes full Medical and Dental coverage through the state and local clinics at a cost of $0.00 per year. Jose Illegal still has $31,200.00.
Joe Legal makes too much money to be eligible for Food Stamps or Welfare so Joe Legal pays for food… $700.00 per month = $8,400.00 per year. Joe Legal now has $10,831.00.
Jose Illegal has no documented income and is eligible for Food Stamps and Welfare. Jose Illegal and his family eat very well and still has all his cash $31,200.00.
