Monday, January 12, 2009

Obama Increase likely for low-income elderly

WASHINGTON – More than 7 million poor people who are elderly, blind or disabled and receive cash benefits averaging $477 a month could get an extra monthly payment as part of President-elect Barack Obama's $800 billion economic recovery plan.

Democratic congressional aides said the idea of an extra Supplemental Security Income payment is gaining traction on Capitol Hill as lawmakers and staff aides hold daily meetings to work out details of the upcoming stimulus bill. The aides spoke on condition of anonymity to discuss the closed-door negotiations.

Democratic lawmakers hope to have an economic stimulus bill ready for Obama's signature by mid-February, although officials indicated Monday night that numerous provisions are unsettled.

Several said the emerging legislation likely will provide at least $70 billion over the next two years to help states meet the demand for Medicaid, which provides health care for low income people, and another $25 billion more to help individuals who cannot afford to pay for private, post-employment health benefits.

An estimated $35 billion is tentatively ticketed for additional unemployment benefits.
The tax provisions remain in flux, with Obama's call for a break for companies that create new jobs described by Democratic officials as all but dead. Several Democrats prefer to use the funds to make sure upper middle class families are not ensnared by the alternative minimum tax.
Democrats are more favorably inclined toward Obama's proposal for a tax break for lower-paid individuals and couples, of up to $500 and $1,000.


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