Senate Plan Would Extend Rebates to Social Security Recipients

WASHINGTON — Social Security beneficiaries may qualify for federal rebates under a Senate plan to expand the economic stimulus package.

"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," said Senate Finance Committee Chairman Max Baucus, D-Mont.

The stimulus package agreed to last week by President Bush and House leaders would require a person to have earned at least $3,000 in income to receive a rebate. Under Baucus's proposal, Social Security retirement and disability benefits would qualify as income.

According to a news release from the Finance Committee, a person could also combine earnings from part-time work with Social Security benefits to reach the $3,000 threshold.

The Finance Committee predicted that "tens of millions" of Social Security beneficiaries would qualify. But because the number of people qualifying would be so much greater, checks would be reduced to $500 for an individual and $1,000 for a couple filing jointly instead of $600 and $1,200 under the original plan.

In addition to expanding the stimulus package to include Social Security, Baucus also plans to call for an expansion of unemployment compensation, which was not included in the original agreement.

Baucus's plan, estimated to cost about $156 billion, also would allow businesses with operating losses to write them off retroactively for up to five years instead of the current two years.

House leaders had indicated they hoped for a vote Tuesday, but the Senate proposal may delay that action. The Finance Committee is scheduled to consider Baucus's proposal Wednesday, and the full Senate could act soon afterward.

Barbara B. Kennelly, president and CEO of the National Committee to Preserve Social Security and Medicare, hailed Baucus's proposal.

"America's retirees feel the pain of rising costs and economic uncertainty as much as any segment of our population," Kennelly said.

"Many live check to check and would immediately spend any rebate they receive. The Social Security Administration could get seniors a stimulus check in six weeks — faster than the IRS can deliver. American seniors should be the first step in any plan to pump billions of dollars into the economy as quickly as possible."