Social Security raise next year may be tiny

[No Elephants]

Social Security raise next year may be tiny

By Mark Miller, Reuters columnist

CHICAGO - Last October seniors got some really good news about their Social Security cost-of-living adjustment. This October? Not so much.

This year seniors have benefited from the robust 3.6 percent 2012 Social Security cost-of-living adjustment (COLA). Adding to the good news, they learned Medicare premiums wouldn't take much of a nick out of their inflation raise.

Next year, the Social Security COLA for 2013 is expected to be 1.4 percent - and for many seniors, much of that will be eaten up by a higher Medicare Part B premium.

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However, many seniors won't even get that much because of the interplay of the COLA and premiums for Medicare Part B, which covers outpatient services. These two go hand in hand since the premium is deducted from most seniors' benefits.

Last year the Part B premium rose by a modest $3.50 per month, which meant seniors kept most of that large 3.6 percent COLA. For example, a senior receiving the average monthly Social Security benefit ($1,177) received a net 3.3 percent increase.
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Experts expect the Part B premium to rise from 5 percent to 10 percent in 2013; the Medicare trustees said earlier this year that a 9.2 percent increase was most likely. That translates to a $9.20 monthly increase over this year's $99.90 premium. That means some seniors will see no net increase at all, while many others will get far less than 1.4 percent.

much more at
http://bottomline.nbcnews.com/_news/2012/10/11/14367763-social-security-raise-next-year-may-be-tiny?lite


Food prices are considered too volatile to be included in the calculation of what seniors and the disabled need to survive.

[Enthusiast]

1. The top marginal rate should be returned to 50%.

Capital gains should be taxed the same as regular income. Inheritance taxes should be increased, not eliminated. All these methods and loopholes used to hide income in tax havens should be addressed.

Then social security increases should be based on real inflation not some contrived figures created to keep increases smaller than they should be.

I'm just saying.

[No Elephants]

2. I love how Mark Miller, the author of this article,

calls an increase 0f 3.6% "robust."

And does not mention that, prior to that modest increase, OASDI recipients had gone for two or three years with no increase at all because, supposedly, prices had not increased. At least not the prices that are included in the OASDI cost of living calculation.