Posted on 03/09/2010 8:30:07 AM PST by Touch Not the Cat
Social Security benefits are off–limits to creditors, such as credit–card companies and banks. But the U.S. can collect debts to federal agencies by "offsetting," or withholding Social Security and disability payments.
The Treasury currently withholds benefits of 3.1 million Social Security recipients to recover defaulted student–, farm– and small–business loans, unpaid income taxes, amounts veterans owe for health care, and other debts to the government.
Previously, the U.S. hasn't been able to withhold Social Security payments to recover most debts delinquent for more than ten years.
But a provision in the 2008 Farm Bill lifted the ten–year statute of limitations on the government's ability to withhold Social Security benefits in collecting debts other than student loans—for which the statute of limitations was lifted in 1997—and income taxes, where the limit remains 10 years.
This means that a person who defaulted on a small–business loan in 1995, for example, and who is receiving Social Security could be notified that his benefits may be reduced each month until the debt, with interest, fees, and penalties, is paid. The Treasury can withhold 15% of the benefit, though it can't be reduced to below $750.
Tax debts have no floor.
The change will add more than $6 billion to the $75 billion in delinquent debt individuals owe the government, according to the Financial Management Service, the Treasury's debt collection unit.
(Excerpt) Read more at finance.yahoo.com ...
Hmm, who controlled congress in 2008 when this little provision was slipped in?
Hope & Change seniors and baby boomers. The young folks will get screwed even more.
Good. I see nothing wrong with taking welfare money to pay obligations that were welched upon.
George Bush because everybody knows that he and Dick Cheney had a dictatorial control over the entire nation. It was only when the Obamassiah was elected that Congress was freed from such shackles!
At least that's what I'm expecting the mainstream media/leftists to say...;)
“EVIL” = when a doctor or a hospital expects YOU to pay for any portion of your own health care expenses.
“EVIL” = when any person is forced into bankruptcy court, due to medical expenses, even if it happened due to the fact that the sick person refused to buy insurance, until an illness was diagnosed.
“EVIL” = The above mentioned person being denied coverage, for a “preexisting condition” even though that person went for several years, on purpose, with no insurance at all, prior to said diagnosis.
“EVIL” = an insurance company denial of any claim, even if the patient/customer LIED on the application, to obtain insurance.
GOOD??
When the Government goes after your estate, to pay for any Medicaid expenditures, on your behalf, after you are dead.
(It is called Medicaid Estate Recovery, look it up!)
GOOD?
When the Feds go after your Social Security check, garnishing your benefits to pay back expenses made on your behalf, or to pay back defaulted loans.
Get that?
Banks = EVIL!
Insurance companies = EVIL!
Health Care Providers = EVIL!
The Federal Government?
Why, they are just angels doing good works!
It is as if the Feds and the States NEVER deny a disability claim, a work man's comp claim, a Medicare or Veterans claim!
THEY DO ALL THE TIME, but the MSM never reports on it!
The government also, routinely, denies admission to these programs, in the firts place!
YES, the government must manage its expenses, and people should be forced to follow the rules, in these programs.
But -— why is it OK for the government to do the SAME things that private insurance does, and the government NEVER gets questioned or attacked for its “cold hearted” business management?
SS is not welfare. You and I are paying into the system to pay for those on SS now - hopefully when we’re ready to receive SS there will be enough people working to pay for ours. OTOH I agree with what you’re saying - they incurred a debt that has to be paid back to those who advanced the money.
I don't either, but why does the Government get preferential treatment on obligations?
Alert .. PING!
Who was the president who signed it? Wasn't there a farm bill when the GOP controlled everything that was a real monster?
I’ve paid a goodly amount into Social Security, so I would hardly call it welfare money.
Very interesting. Thanks for posting.
The beast is hungry and running out of food. Too bad it won’t put itself on a diet. The illegals get all sorts of bennies while our own citizens will be hounded to hell and back for every last penny it can get.
We all have been taxed out the rear end for Social Security but every last penny of it went into someone else's pocket.
What’s that got to do with anything.
Your money is long gone. When it is your time to collect, you will just be another faceless person with their hand out.
I hate payroll taxes, they sell it as an investment but it is just another Federal money grab.
Looking at it as welfare just puts the whole system into persective.
Well, I’ll have agree whether or not it’s welfare, if, in fact, I’m being repaid money I paid in. I don’t care if the money is long gone or not. If, by chance, I get SS payments, I will not consider it welfare.
Bummer, I thought I actually won an argument. My day is coming.
Let me know when it arrives...
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