Cuts on SSI/SSDI?

Discussion in 'General Chat' started by yizuman, Nov 19, 2012.

  1. yizuman

    yizuman Active Member

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    I'm told there may be cuts involved on our disability checks starting with the Fiscal Sequestration January 2nd, 2013.

    Anyone know anything about it?

    :ty:
     
  2. Foxrac

    Foxrac Well-Known Member Premium Member

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    No.

    United States fiscal cliff - Wikipedia, the free encyclopedia
     
  3. deafdrummer

    deafdrummer Active Member

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    However, even if SSDI is left alone per the mandatory status, the tax cut that would no longer be in place would serve as a "reduction" in overall income if you do work on an annual basis. Question is, which will be higher, the difference in this year's tax rate versus next year's tax rate, or the COLA increase we're supposed to get next year?

    If your tax rate was, say 14% this year, and next year it goes up to 16%, and your COLA increase is only 1.2%, then yeah, you have a "reduction" in your total income for 2013. Never mind the fact that you also have a reduction in income via inflation that you see in rising prices (which is caused by an expanding money supply).
     
  4. CrazyPaul

    CrazyPaul Active Member

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    The law forbids any cuts on SSI/SSDI and SS retirement benefits.
     
  5. radioman

    radioman farming for love! Premium Member

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    no cuts - but your medicare coverage may be impacted.
     
  6. diehardbiker

    diehardbiker Active Member

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    Not accurate! Law CAN change and as what it stands, its still up in the air. There is no such laws that prevents government from cutting the benefits. I just checked.

    They (Government) already discussing about entitlement reform. SSI/SSDI and SS are part of entitlements.

    My point is don't assume they won't touch entitlements and be prepared. I am not saying that they will cut SSI/SSDI/SS and I hope it won't happen.

     
  7. diehardbiker

    diehardbiker Active Member

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    Its just a talk, they have not passed anything to prevent fiscal cliff. The medicare cuts were also discussed at capitol hill recently.

     
  8. whatdidyousay!

    whatdidyousay! Well-Known Member

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    I don't know about any cuts happening but I sure would not count getting any
    COLA for next year. Has anyone gotten any letters saying they're getting more $$$ in 2013??
     
  9. diehardbiker

    diehardbiker Active Member

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    In history, it shows that laws CAN be changed. There was two laws that were made to make sure it never repeals. That law were written to prevent the repeal (Cancel the law), and it failed on first one, second one I predict anytime within 10 years from now. The first one was alcohol prohibition, the law was written that won't allow congress repeal that law. That was back in 1918, guess what happened? They were repealed ANYWAY and we are now allowed to drink booze. During early 70's President Nixon had congress create the law as we know "War on drugs", and it was written to prevent anyone from repeal them. We now know that "War on drugs" have been failed miserable, now two states just passed by votes. US government is now so broke, this creates even greater possible that we will repeal that 70's law. So, you think government will create law and leave as it is indefinitely? Don't bet on it.
     
  10. Tousi

    Tousi Well-Known Member

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    Yeah? Evidence, please......
     
  11. Foxrac

    Foxrac Well-Known Member Premium Member

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    http://www.alldeaf.com/2129404-post57.html
     
  12. Foxrac

    Foxrac Well-Known Member Premium Member

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    You should get a letter sometime this month, in December.
     
  13. diehardbiker

    diehardbiker Active Member

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    Don't forget Fiscal cliff. The COLA information is just an announcement of average cost of living increase. It does not necessarily mean that SS checks will go up by guarantee.

    The cuts COULD cancel the COLA increase for January if congress passed them, and could cut them even further.

    My point is, there is NO guarantees that it will go up or down and either way will happen. As of right now, no one really knows where we are heading.

     
  14. Foxrac

    Foxrac Well-Known Member Premium Member

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    That's not what CP was talking about.

    He claims that law says that benefits cannot be cut to reduce the expenses, so he believes that existing benefits will be protected, however it will affect the new applicants.

    If we goes over the cliff so the spending on some portion of entitlement will be reduced, so it is likely to affect the new applicants, but there are more spending cut with various programs, including defense.

    The law require COLA for SS, SSDI, SSI, so it is based on inflation, if there is no inflation so it won't raise, if there is inflation, so it will raise. If you are talking about cancel the COLA so good luck with democrats because they won't cancel those.
     
  15. diehardbiker

    diehardbiker Active Member

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    You know, the formula of COLA has been changed over years. Remember three years in row where there is obvious inflation but none of SS gets raise on checks. COLA can be adjusted, changed anytime and it is one of their dirty way of cutting the benefits without anyone realizes it.

    Even with COLA since 1970's, do you realize people getting social security checks during 70's actually have more spending power than today. I believe that COLA was intended to find a loophole to cut the benefits without anyone start to voice their complaint.

     
  16. Foxrac

    Foxrac Well-Known Member Premium Member

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    What was max monthly for SSI in 1970's for single person?
     
  17. diehardbiker

    diehardbiker Active Member

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    Please study "Spending power" what does that mean?

    For example, in 70's car you can buy brand new car for less than $5K, now how much for same nice car? Probably around $25K, so that is 5 times more than it was 40 years ago. Now, if one earns same wage as it was in 70's and now, do they have same spending power? You can answer that question yourself.

     
  18. Foxrac

    Foxrac Well-Known Member Premium Member

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    I googled "spending power" but turned into nothing, except talk about government, etc.

    There is problem in 1970's because inflation was high, so not went back to normal until early 1980's.
    The Great Inflation Of The 1970s

    I checked the inflation calculator, so it is normal for prices goes up based on inflation.
    The Inflation Calculator

    The minimum wage was $2 per hour in 1974.
    Federal Minimum Wage Rates, 1955
     
  19. Jiro

    Jiro If You Know What I Mean Premium Member

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    spending power = ability to afford anything within your means based on your income. the higher your income is, the more spending power you have.
     
  20. diehardbiker

    diehardbiker Active Member

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    Your getting warmer. Im speaking for PERSONAL spending power. SSI back then would be close to 300 dollars, and today is about ten times more expensive to live on, and if that is fact, we should be seeing $3000 SSI check, but it only either doubles or triples that is all.

    More and more can't afford nice apartment with SSI checks nowadays than it was back in 1974 which is when SSI started.

    And I'm starting to hear people who lives on SS and their primary heat source is Oil, more and more of them are left cold cause they can't afford expensive oil heating like they used to be. There are places that the only way to heat the house is Oil, Propane and wood. For example almost entire state of Maine don't have natural gas pipeline. COLA isn't even include this type of inflation because the cost of natural gas pulls the average way down to make it looks like it is cheap to live on but reality it is not.

    I'm speaking for APPLE VS APPLE not Apple VS Orange.

    Have you noticed some food packages at supermarket getting smaller but the price is the same, it is one way they inflate the true cost, and it can messed up with COLA calculation.

     

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