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Old 10-16-2009, 10:56 AM   #61
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In effect, the 2009 Social Security COLA compensated retirees for inflation that no longer existed.To make up for this overpayment, Social Security will pay no COLAs until prices rise back to their previous fall 2008 levels, which, according to the Congressional Budget Office, won't be until 2012."
I wonder if we can expect the income ceiling subject to SS taxes to remain unchanged until 2012....
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Old 10-16-2009, 11:09 AM   #62
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DING DING DING We have a winner! Obama and his buds (not that Repub's are any better) bribe another group at taxpayers expense. Shooting fish in a barrel...

It takes a village to raise a child. The village is Washington. You are the child.
-The Hellary book, condensed by P. J. O'Rourke

Politics: The art of bribing us with our own money. We complain about the politicians and yet we perpetuate it at the polling booth generation after generation. Ultimately we have no one to blame but ourselves. Rant off...

Nothing new here.
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Old 10-16-2009, 12:21 PM   #63
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oN FURTHER NOTE...
If the current working kids find all this SS business as paying Seniors to much for putting in too little? Just as maybe their Grandparents got?

Just consider this, left out fact..
This Country and you kids Didn't have to live thru either 29-32' Crash, Go thru 2 World Wars and Didn't have to go thru living in fear of During the Decades Of The DRAFT, let alone Loose your Grandfather, Father and /or Sons in those wars, let along Viet Nam yrs.. and maybe it's just another way the Congress is Repaying those that Lived and sacrificed to our country , that made it what it is today...

I think anyone who served in the Service should have to pay ANY Income taxes on their first $50k after and if they made it out alive, and those that came out handicapped? Should be Paid the 'Avearge Median Income" for the rest of their Life, Tax Free...and let those others who didn't serve pay the bills, along with The Companies that made Billions on those wars..

Those that Didn't Serve their country? Not so much
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Old 10-16-2009, 12:28 PM   #64
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Just consider this, left out fact..
This Country and you kids Didn't have to live thru either 29-32' Crash, Go thru 2 World Wars and Didn't have to go thru living in fear of During the Decades Of The DRAFT, let alone Loose your Grandfather, Father and /or Sons in those wars, let along Viet Nam yrs..
Yeah, it's my fault that I was born when I was.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
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Old 10-16-2009, 12:51 PM   #65
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Note that Medicare Part B premiums (about $1,200 per year per person) are frozen for low and median income people in 2010 because there is no SS increase. The Center for Medicare and Medicaid hasn't announced what it's going to do regarding premiums for about a quarter of Medicare enrollees who are "higher income". At least I can't find a news release- they are late, last year the announcement was made on Sept 19.CMS ANNOUNCES MEDICARE PREMIUMS, DEDUCTIBLES FOR 2009
A bill passed out of the house with a large majority to freeze everyone's Medicare Part B premium for 2010. It was read into the Seante Finance Committee and as far as I know nothing has been done yet.

I am sure the government would happily throw the small "high earner" minority who pay the increased premium each year to the gators, but there are other issues. Medicaid pays the Part B premium for Medicaid recipients, of whom there are quite a few. Also, there are Medicare recipients who do not yet get SS payments, so they pay the Pt. B premium out of pocket. With no action, this group will also pay quite a bit more. Overall, I feel that it likely will pass, and that this is the reason for the delay in announcing 2010 premiums.

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Old 10-17-2009, 09:11 AM   #66
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So here’s a rude question. Do you know anyone who has gotten a wage increase every year for 34 consecutive years?
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Old 10-17-2009, 10:35 AM   #67
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Originally Posted by tjscott0 View Post
There may be no COLA increases til 2012.

Bad News For Those Born In 1947 - Forbes.com


"Social Security COLAs are calculated every October by comparing the third-quarter data of the Consumer Price Index for Urban Workers (CPI-W) with the previous year's numbers. An increase in the CPI results in a COLA the following January for retirees and other Social Security beneficiaries. Rising energy prices caused a 5.8% COLA to be ordered in the fall of 2008. However, plummeting prices between the fall of 2008 and the beginning of COLA payments in January 2009 caused the CPI as a whole to drop by around 5%. In effect, the 2009 Social Security COLA compensated retirees for inflation that no longer existed.To make up for this overpayment, Social Security will pay no COLAs until prices rise back to their previous fall 2008 levels, which, according to the Congressional Budget Office, won't be until 2012."
This point was brought up earlier.. that the COLA calculation is based on the national Consumer Price index (CPI) which may not rise to 2008 levels for several more years. Logic would dictate that if the Consumer Price index falls, then the SS payment should also fall. But we all know no one is going to propose cutting SS payments. So the COLA adjustment remains zero until the the CPI climbs back up to new highs.

The only reason the CPI will climb to new highs is inflation. I have heard both sides of the argument of why inflation may, or may not, rise (some predict rapidly). In theory, Social Security payments do not need a COLA adjustment, providing the right "basket of goods" used to calculate inflation is properly adjusted to reflect items that SS recipients would typically buy. This is where the Consumer Price Index Is Controversial

The basket of goods for SS recipients is likely to be quite different than a young family. College tuition, money spent on apparel and new car purchases are likely to be less a factor for seniors. Conversely, medical care costs are likely to be higher. Previous posts have highlighted several areas where items like heating oil, gasoline or electricity may be a larger part of a SS recipient's budget.

Calculating CPI is an inexact business to start with. Making matters even worse is tying the SS COLA to the same Consumer Price Index that may be accurate for middle class, middle age Americans. Clearly both the types of items purchased and the percentage of each item in a typical basket of goods is different for different age groups.

It seems logical to have the Bureau of Labor Statistics calculate a special CPI that reflects spending patterns of older, less affluent SS recipients simply because they are the ones most impacted by any even minor price changes. Using the CPI for the population at large clearly opens the door for conditions where people who rely heavily on SS could suffer a real drop in standard of living - simply because the wrong basket of goods (and thus the wrong CPI) was used to calculate their annual SS COLA adjustment.

Here is another important link to Understanding the CPI
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Old 10-17-2009, 11:32 AM   #68
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The only reason the CPI will climb to new highs is inflation.
So the only reason fuel costs have been rising is... inflation? Hmmm.
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