Social security is always imperative and it completed 75 years in 2010. It gave a lot of money to the senior pros in this span. If Congress doesn’t acts briskly, Social security will have to face financial problems by 2037. In 2011, an estimated amount of Americans that are not physically fit or got retired have got no increment in their social security benefits and this is now a couple of years on the trot. This shows that the social security department is facing some problems.
The social security administration stated last Friday that the increase in inflation is too low and haven’t got any rise since 2009. The announcement marks just the second year as steps were taken in making adjustments for inflation in 1975. The cost of living was automatically adjusted each year under the inflation measure technique by congress in 1970.
The house speaker was very clear that the house with vote and then they will make up for the COLA after the congress elections and a bill of $250 will be passed to clear the Social security recipients. But even if the bill gets passed, it still has to face opposition in Senate. Due to low inflation the old citizens gets some comfort, as their savings and home values haven’t recovered completely from recession. Most of them haven’t got any rise since 2009 and it will remain the same for some time to come. This is a worst scenario for democrats as the elections are approaching and they will most probably by losing their house as well as a majority when it comes to Senate.
A payroll of 6.2% is available in order to support the social security program. It’s a tax paid by workers and employers having wages up to a certain amount. As now there will be no COLA, so this amount will remain unchanged.
The latest increment was in 2009 when people saw an increment up to 5.8 percent. This was the biggest increment in recent years.
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