Minnesotans to Begin Receiving Recovery Dollars
Washington DC – Two key provisions in the American Recovery and Reinvestment Act will soon put money directly in the pockets of millions of Minnesotans. On April 1, 2009, the “Making Work Pay” tax credit will go into effect, lowering the payroll tax withholding rates for 95 percent of working families. Another provision will give senior citizens on Social Security and people on Supplemental Security Income (SSI) a one-time payment of $250. The legislation also provides for a one-time payment to Veterans Affairs and Railroad Retirement Board beneficiaries.
“We are getting cash to people when they need it most,” said Congressman Jim Oberstar. “Times are hard and the Making Work Pay credit will put about $65 a month back into the pockets of working people. That’s a tank of gas, or a typical phone bill; it’s even enough to pay the participation fees for most extracurricular activities for kids in school.”
In the next few weeks, Social Security recipients will begin receiving a one-time lump sum payment of $250 dollars. The payments are meant to help out senior citizens and disabled people on SSI during tough economic times. The payments will be made separately from regularly scheduled Social Security and SSI payments, arriving no later than June 4, 2009.
Individuals will not have to fill out any application or take any special action to begin receiving either benefit.
“This is a good deal for taxpayers. For every dollar spent on payroll tax relief, $1.28 is returned to the economy because working people spend that money on things like gas, groceries and bill. A one-time lump sum distribution like the Social Security and SSI payments will return $1.22 for every dollar spent,” said Oberstar.