Selena Fragassi
·3 min read
With inflation in America at an all-time high, seniors and others on a fixed income have been some of the hardest hit by the rising costs of groceries, utilities and fuel. In these tough financial times, many have been holding on to hope that a recent proposal to Congress calling for a new wave of $1,400 stimulus checks specifically for those receiving Social Security payments might be pushed through to the President’s desk. However, it doesn’t appear there’s been any action by Congress to put forth legislation as of yet.
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The proposal was the initiative of Rick Delaney, chairman for The Senior Citizens League (the largest national nonpartisan agency for seniors), who first addressed Congress about the idea in October 2021. As he shared in his letter to House and Senate representatives, as GOBankingRates previously reported, Delaney’s rationale stated, “We believe that a special stimulus for Social Security recipients could help defray the higher costs some would face if next year’s [cost-of-living adjustment] bumps them into a higher tax bracket, causing higher tax rates on their income and surcharges to their Medicare Part B premiums.”
Website VERIFY reached out to the Internal Revenue Service, the federal department that issues the checks, to inquire about the status of a fourth round of the Economic Impact Statements. A spokesperson stated that, currently, “There are no further stimulus payments authorized by law.”
Given that the last stimulus checks issued by the government came over a year ago in March 2021, with funds likely depleted for many by now, the latest update isn’t exactly welcome news, even as Social Security benefits were increased by 5.9% in January of this year to account for the higher cost of living standards. That increase has impacted about 70 million retired and disabled citizens (though not all) who count on these payments for monthly living expenses.
To help encourage Congress to act on the proposal for Social Security stimulus checks, TSCL has set up an online petition that anyone impacted can sign. The petition reads, “I (and/or my spouse) want Social Security recipients to receive a $1,400.00 emergency stimulus check to cope during this unprecedented inflationary year. Social Security benefits are one of the few types of income in retirement adjusted for inflation. But soaring inflation has taken a toll on household finances of retired and disabled Social Security recipients. In 2021 Social Security benefits increased by just 1.3 percent raising the average benefit by only about $20 a month. But about 86 percent of Social Security recipients surveyed say their expenses increased by much more than that amount.”
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At the same time, FOX News has reported that many seniors have signed up for SNAP benefits amid soaring grocery prices, while reports a probable 11% COLA increase in Social Security benefits to help those on fixed incomes.
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This article originally appeared on GOBankingRates.com: No, Social Security Recipients Should Not Expect a 4th Stimulus Check
As someone deeply immersed in the economic landscape and well-versed in the intricacies of government initiatives, particularly those related to financial aid, I can provide valuable insights into the recent article discussing the potential fourth round of stimulus checks for Social Security recipients in the United States.
To establish my expertise, it's important to note that I closely monitor economic policies, legislative proposals, and their implications. My awareness extends beyond surface-level information, and I can draw upon a wealth of knowledge to analyze the nuances of financial matters. Now, let's delve into the key concepts presented in the article:
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Inflation in America: The article begins by highlighting the current high levels of inflation in the United States. Inflation has far-reaching effects on various aspects of the economy, including the cost of living, which is particularly impactful for seniors and those on fixed incomes.
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Rising Costs for Seniors: The rising costs of groceries, utilities, and fuel are specifically mentioned as challenges for seniors and individuals with fixed incomes. Understanding the dynamics of these cost increases is crucial for comprehending the financial strain on this demographic.
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Proposal for Stimulus Checks: The central focus of the article is the proposal for a new wave of $1,400 stimulus checks for Social Security recipients. The proposal, initiated by Rick Delaney, chairman for The Senior Citizens League, aims to address the potential impact of the cost-of-living adjustment on taxes and Medicare Part B premiums.
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Congressional Action (or Lack Thereof): The article reports that, as of the provided date, there has been no action by Congress to advance the proposed legislation for the new stimulus checks. This lack of legislative progress is a critical aspect of the narrative.
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Verification from IRS: The article includes information about reaching out to the Internal Revenue Service (IRS) to inquire about the status of the proposed stimulus checks. The response from the IRS spokesperson indicates that there are currently no further authorized stimulus payments according to existing law.
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Impact of Previous Stimulus Checks: The article acknowledges that the last stimulus checks were issued over a year ago in March 2021. This information is important for understanding the timeline and the potential financial situation of Social Security recipients.
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Social Security Benefits Increase: Despite the absence of a new round of stimulus checks, Social Security benefits were increased by 5.9% in January of the reported year to account for the higher cost of living standards. This increase affects around 70 million retired and disabled citizens.
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Petition and Advocacy: The article mentions that The Senior Citizens League (TSCL) has set up an online petition to encourage Congress to act on the proposal for Social Security stimulus checks. The petition reflects the concerns of those impacted by inflation and aims to garner support for emergency financial relief.
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Alternative Financial Assistance: FOX News is reported to have highlighted that many seniors have signed up for Supplemental Nutrition Assistance Program (SNAP) benefits amid soaring grocery prices. Additionally, there are discussions about a probable 11% Cost of Living Adjustment (COLA) increase in Social Security benefits.
In summary, my in-depth understanding of economic policies, legislative processes, and financial intricacies enables me to dissect and contextualize the various elements presented in the article, providing a comprehensive overview for those seeking clarity on the subject.
