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Senior Citizen Politics
Senator Baucus Demands More Senior Citizens
be Included in Economic Stimulus Plan
House bill excludes many senior citizens from rebates
due to income limit that does not include Social Security benefit
 Jan. 30, 2008 – By late today many senior citizens
should have a better idea if they will be included in the government’s
plan to stimulate the sinking economy by pouring billions of dollars
into the hands of consumers and businesses. The House passed their
version on Tuesday and the Senate Finance Committee is meeting on
Wednesday afternoon to consider the proposal by Chairman Max Baucus
(Democrat of Montana), which includes more senior citizens. Many seniors will not qualify for the House plan because they don’t have
enough income.
The House approved its plan by a vote of 385 to 35.
Speaker Nancy Pelosi and the Republican leader, Rep. John A. Boehner of
Ohio, immediately called on the Senate to adopt the House version.
President Bush also endorsed the House plan.
But Sen. Baucus, as chair of the powerful Finance
Committee, has balked and a major problem is that the House version does
not include checks being sent to many senior citizens, because they do
not earn enough money outside of Social Security.
The House includes tax rebates of up to $600 for
individuals and $1,200 for couples, but allows nothing for those earning
over $75,000 ($150,000 for couples). There are also business
provisions. (Read
more in New York Times)
But, the controversy involving senior citizens is
the House plan to allow a minimum payment of $300, but only if
individuals can prove earned income of at least $3,000.
The Baucus plan allows senior citizens to include
their Social Security payments as income.
 “America’s seniors have worked
hard all their lives, and are major contributors to our economy. So my
proposal will give America’s seniors the same rebate as any wage earner.
Rebates for seniors and payroll taxpayers, extended unemployment
insurance, and tax relief for struggling businesses will put more cash
into the American economy right away,” said Sen. Baucus.
“The White House says we mustn’t
slow the economic stimulus agreement down, or blow it up. I agree. We’re
going to improve it and get it passed right away.”
Baucus will add millions of Americans – mostly
retirees – to the eligible class of rebate recipients. For instance:
1. A 70-year-old retiree receiving $800 per month in Social Security
retirement benefits would qualify because she has at least $3000 in
benefits.
2. A 42-year-old disabled person receiving $500 per month in Social
Security disability benefits would qualify because he receives at least
$3000 in SSDI.
3. A 68-year-old widow receiving $200 per month in Social Security
survivor benefits and $100 per month for part-time work would qualify
because her combined wages and Social Security benefits are in excess of
$3000.
Sen. Baucus also released the following statement
on why he includes more senior citizens.
“Statistics show that American seniors are a prime
demographic for an economic stimulus package. But more than 20 million
seniors could be left out of the planned Federal tax rebate unless
Congress acts – just because they don’t have at least $3000 in earned
income, or enough taxable income to get the full proposed credit.
“The Finance Committee plan would allow almost all
seniors to receive a $500 rebate by showing at least $3000 of Social
Security income on a 2007 tax return. America’s seniors have worked hard
all their lives. Many live on fixed incomes, and struggle to pay their
medical and heating bills. Seniors deserve to be included in any rebate
program. And a rebate to seniors works for America’s economy – here’s
how:1
“Seniors are significant contributors to
American economic activity.
“Economists agree that consumer spending, fueled by
tax rebates, can boost America’s economy. Americans over 65 are
responsible for 14 percent of all consumer spending.
“Seniors spend – exactly what America’s economy
needs now.
“Americans over age 65 spend 92 percent of their
incomes within a given year – that’s higher than any other demographic
group over the age of 25. Households headed by a person over age 75
spent an even higher percentage of their income – 98 percent.
“In 2006, Americans over 65 had a combined income
of $863 billion – and those seniors purchased more than $800 billion
worth of goods in the same year.
Other Social Security recipients can benefit,
too.
“In 2006, 18 million Americans received Social
Security disability benefits or survivor benefits. Widows, widowers, and
disabled Americans can qualify for an equal tax rebate too – under the
Finance Committee plan.
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