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Obama proposes $250 payments for seniors

Shared by Niicss on Thu Oct 15, 2009 3:44 am

In an attempt to help senior citizens, Obama has proposed $250 payments to more than 50 million seniors. This proposal comes up at a time when it has been declared that the social security income would not increase next year. As per the proposal, $250 will also be given to those who are receiving the disability benefits and veteran benefits. Also, the railroad retirees and retired public employees who don't receive social security will receive this payment. However, recipients would be limited to one payment.

Source: http://news.yahoo.com/s/ap/20091014/ap_on_go_pr_wh/us_social_security_obama
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Mini Profile  jerry
jerry
Joined: 17 Oct 2005

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PostPosted: Thu Oct 15, 2009 5:21 am    Post subject:

Hi,

It is definitely going to help a lot of seniors if Obama's proposal for a payment of $250 is put into effect. For years, thousands of homeowners have counted on their Social Security monthly checks to make ends meet. With the Social Security payments set to remain same for the year to come, a guaranteed payment of $250 will no doubt be of great help to millions of seniors.

However, it is not very clear where the funds for this initiative will come from. The initiative is expected to cost around $13 billion and it is very unlikely that the Govt. will use the Social Security funds to make these payments. The Social Security fund is shrinking fast and is projected to collect less in taxes than what it will pay out to in benefits. Hence it is yet to be seen, how the Govt. manages to finance the $250 payments to millions of seniors. We just hope it does not turn out to be something that looks good on paper but has little effectiveness in practicality.

Thanks,

Jerry
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