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  • Tax On Social Security

    House Passes Funding Bill .On Monday, Members of the House and Senate returned to Capitol Hill from the month-long August recess and quickly began working on a continuing resolution (CR) to fund the government past September 30th. Originally, leaders in both chambers agreed to keep the CR as "clean" as possible in order to avoid a government shutdown like last year's and to allow lawmakers to quickly resume campaign work for the looming November 4th elections. .Federal law generally prohibits or restricts the payment of both Social Security and SSI to unauthorized noncitizens, but a number of exceptions exist. Although the perplexing web of rules differ for each program, immigration or disability attorneys are frequently involved in applicants' efforts to apply and qualify for SSDI or SSI benefits. In addition, illegal immigrants may be using forged or invalid Social Security numbers (SSNs) and papers when claiming benefits. … Continued

  • Best Ways To Save February 2020

    COLA cuts: Use the "chained" Consumer Price Index (CPI) to calculate annual cost-of-living adjustments (COLAs). Supporters say that the difference would be small, reducing the COLA about .3 tenths of a percentage point per year. But TSCL estimates this "small" change would cost retirees, with average benefits of ,170 in 2011, some ,223 over a 25-year retirement. .Sources: "Housing Bust Derails Some Seniors' Assisted-Living Care," Harris Myer, Kaiser Health News, August 21, 2011. .One of our purposes in visiting with those offices was to find out why they do not support the bill and to see if there is any hope that some compromise to the bill could be reached. The main reason they do not support the Grassley-Wyden bill is because it has a provision that they believe would, in essence, result in government price-setting of drug prices and would be a first step toward a one-payer (meaning government) health care system. Each office mentioned other bills that they might support but there is not one bill that the Republican majority is currently in favor of and that might have a chance to pass. It was also stated that because this is an election year there is a very short timeline for action to be taken. … Continued

If the COLA were calculated using the methodology used in 1990, this year's COLA would not be 1.7 percent – it would be 5.2 percent. And if the COLA were calculated using the 1980 methodology, this year's COLA would be 9.4 percent. As a result of the CPI's manipulation over the past three decades, Social Security beneficiaries have lost over 20 percent of their purchasing power, according to our research. Next year's projected zero COLA will put them even further behind. .When no, or a very low, COLA occurs, a provision of law known as "hold harmless" is triggered. Under the provision, when an individual's Social Security COLA is insufficient to cover the increase in the Medicare Part B premium, the Part B premium is adjusted so that one's Social Security benefit isn't reduced from one year to the next. About 70% of Medicare beneficiaries are protected by hold harmless from rising premiums. .Since 2000, COLAs have increased Social Security benefits by a total of 55%, yet typical senior expenses over the same period grew by 101.7%. The average Social Security benefit in 2000 was 6 per month. That benefit grew to ,262.40 by 2021 due to COLA increases. However, because retiree costs are rising at a far more rapid pace than the COLA, this study found that a Social Security benefit of ,645.60 per month in 2020 would be required just to maintain the same level of buying power as in 2000. ."Based on the new data through August, there's a downward inflation trend," Johnson says. "Although my calculator indicates the COLA could be 6.1 percent, the chances of inflation remaining high enough for that to occur is only 10 percent based on 20 years of historic trends. The chances of the data dropping to 6 percent are twice that high, 20 percent. "With the July and August consumer price data, inflation is plateauing," Johnson says. .The fact is there isn't much information yet— even though doctors and their staff are reporting huge amounts of data mandated by the 2010 health law. Based on what I've been able to learn, the Administration is still tinkering with the system. .Notes from Jessie Gibbons, TSCL Legislative Analyst .Can Home Health Agencies Provide Rebates? .TSCL supports legislation that would raise the taxable maximum. "TSCL believes that cutting Social Security benefits can't be justified when moderate payroll tax adjustments can keep the system solvent for decades," says TSCL Executive Director Shannon Benton. "Requiring everyone to pay their full share would add years of solvency to the Social Security," Benton says. .As TSCL supporters well know, Congress has not been able to accomplish significant legislative reform to the convoluted drug pricing system even though anger about high drug prices has been rising for a long time.