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Economic Stimulus Package Good for Seniors?
By Spectrum Staff
The
American Recovery and Reinvestment Act (ARRA) — just passed
by the House and under consideration in the Senate — contains
a number of provisions that will benefit America’s seniors,
but advocates contend that certain provisions leave seniors vulnerable
and may harm Social Security benefits in the future.
Lawmakers consider ARRA vital to revamping the American economy, strengthening
the middle class and fostering a clean, efficient American energy policy.
Senior-friendly portions of the bill include $87 billion in help for state Medicaid
programs, $650 million to continue the DTV coupon program, which enables American
households to convert from analog television transmission to digital transmission,
and $500 million to the Social Security Administration to help process the steep
rise in disability and retirement claims.
The bill earmarks $30 billion to extend health insurance coverage to the unemployed
by allowing workers 55 and older to retain their COBRA coverage until they become
Medicare eligible or secure coverage though a subsequent employer. Also included
is $200 million for senior nutrition programs.
The Senate version of ARRA under consideration includes a one time payment of
$300 to all retirees receiving Social Security, SSI Benefits, Railroad Retirement
benefits or Veterans benefits.
Advocates are strong in their support of a $300 payment to seniors but maintain
that amount is insufficient to truly help the nation’s poorest seniors.
“It’s difficult to understand why the Senate would give the least
money to the most vulnerable group in our economy,” said Daniel O’Connell,
chairman of The Senior Citizens League (TSCL). “It seems clear that seniors — especially
those barely getting by — are precisely the people that will stimulate
the economy by spending their stimulus checks.”
A recent study released by TSCL found that seniors lost 51 percent of their buying
power since 2000, a result of costs increasing more rapidly than the Social Security
cost-of-living adjustment.
“We receive phone calls from seniors every day who are having a tough time
paying for their prescriptions, groceries and rent — these are the very
people who need the stimulus most,” stated Shannon Benton, executive director
of TSCL.
TSCL is advocating for as much as $1,000 in relief for the nation’s poorest
seniors — the same amount couples earning up to $150,000 per year would
receive.
Another concern of advocates is that the Senate version of ARRA may result in
a long-term hit to Social Security.
Under the Senate proposal, workers would receive a refundable payroll tax credit
on their portion of Social Security taxes. The $145.3 billion refundable payroll
tax credit proposal would give individual workers up to $500 and working couples
up to $1,000, but it might force the Social Security Trust Fund into deficit
spending as soon as 2010.
“Cutting programs like Social Security and Medicare as a tradeoff to pay
for stimulus expenditures is a false choice, which will hurt generations of retirees,” stated
Barbara B. Kennelly, President/CEO of the National Committee to Preserve Social
Security and Medicare.
“Social Security and Medicare need to be adjusted modestly to reach solvency,
but that is doable,” Kennelly continued. “We don’t have to
enter into a grand bargain pitting our economic recovery against the health and
security of future generations of seniors and their families.”
“The Social Security Trust Fund is critical in ensuring that seniors don’t
have to endure benefits cuts,” said O’Connell. “Although we
recognize the economy is in bad shape, we don’t think putting the Trust
Fund into the red is a responsible response.”
One suggested alternative is for lawmakers to take money required for tax relief
from the general treasury instead of the Trust Fund.
This page and its contents ©2009
Metropolitan News Company, Inc.
