SOCIAL SECURITY RAISE

Social Security Raise
Something good has happened in Social Security. Social Security recipients will see the first raise in their checks since 2009 next year, as inflation accelerated this year. A sub set of the consumer price index-the CPI for Urban Wage Earners and Clerical and Workers, or the CPI – W rose by 3.6% in the third quarter, from the same period in 2008, according to the Bureau of Labor Statistics. It’s the first time the benchmark has risen in three years. That’s significant because that figure is normally used to calculate changes in Social Security checks. The 3.6% raise is lower than the increase of 5.8% recipients received the 2009, but it’s higher than the average of 2.4% the past 10 years. THAT is correct; it is higher than 2.4%, which was the average OVER the last 10 years. The inflation figure will also increase the amount of income that is subject to Social Security taxes. Currently, taxpayers pay into Social Security on their first $106,800 of earnings. Next year, that figure will be raised to around $110,000.
Louis J. Vigorita
October 24, 2011