Senator Elizabeth Warren Files Bill to give Social Security Recipients a 3.9% COLA for 2016, and Close a Corporate Bonus Loophole to pay for it.
November 9, 2015 “ WASHINGTON,D.C. – On November 5th, United States Senator Elizabeth Warren (D-Mass.), and 18 other Senators, including Ed Markey (D-Mass) and Bernie Sanders (I-Vt.), introduced legislation to boost Social Security and other critical benefits for seniors, veterans and other Americans following last month’s announcement by the Department of Labor that there will be a 0% cost-of-living adjustment in Social Security for 2016. Warren’s bill will give seniors a 3.9% COLA” and pay for it by closing a tax loophole allowing corporations to write off executive bonuses as a business expense for performance pay.
Mass Home Care for at least the past two decades has advocated for use of a CPI-E measure to help elders on Social Security, rather that the Consumer Price Index for Urban Workers (CPI-W) which understates the impact of inflation on the elderly.
According to Warren, the cost of core goods and services is projected to rise next year, but millions of Americans will see no increase in the benefits they rely on to make ends meet. At the same time, CEO compensation for the top 350 firms increased by 3.9% last year. The Seniors and Veterans Emergency Benefits Act (SAVE Benefits Act) would give about 70 million seniors, veterans, people with disabilities, and others an emergency payment equal to 3.9% of the average annual Social Security benefit, about $581 “ the same percentage raise as the top CEOs.
A $581 increase could cover almost three months of groceries for seniors or a year’s worth of out-of-pocket costs on critical prescription drugs for the average Medicare beneficiary. The bill would lift more than 1 million Americans out of poverty. The cost of this emergency payment would be covered by closing a tax loophole allowing corporations to write off executive bonuses as a business expense for performance pay. The substantial additional revenue saved by closing the CEO compensation loophole would be used to bolster and extend the life of the Social Security and Disability trust funds.
We do nothing, Warren said, on January 1st, more than 70 million seniors, veterans, and other Americans won’t get an extra dime in much-needed Social Security and other benefits. And while Congress sits on its hands and pretends that there iss nothing we can do, taxpayers will keep right on subsidizing billions of dollars worth of bonuses for highly paid CEOs,
Giving seniors a little help with their Social Security and stitching up corporate tax write-offs isn’t just about economics, Warren added. It’s about our values. Congress should pass the SAVE Benefits Act today to give a boost to millions of Americans who have earned it. It is unacceptable that millions of senior citizens and disabled veterans did not receive a cost-of-living adjustment this year to keep up with their rising living expenses.
At a time when senior poverty is going up and more than two-thirds of the elderly population rely on Social Security for more than half of their income, our job must be to expand, not cut, Social Security said Senator Bernie Sanders.At the very least, we must do everything we can to make sure that every senior citizen and disabled veteran in this country receives a fair cost-of-living adjustment to keep up with the skyrocketing cost of prescription drugs and health care.