Monthly checks for the low income why this type of program is significantly better than a permanent raise to monthly benefits. I have all the details, and I want to talk through all of this with you on the topic. All right. So this is a very important topic and something I want to discuss in a little bit more detail here because I do know that there are a lot of you in this community receiving monthly benefits from programs including Social Security retirement, SSDI survivors, SSI, VA, and RRB, or your low income wondering what is Congress going to do to help us all out? Now, I think that a lot of us in this community who receive monthly benefits probably continue to think back about two years ago when they came out and they discussed a $200 per month raise that was going to extend from early 2020 through the end of 2021. Well, of course, all of us recognize at this point it never actually happened, but at the time, a lot of us were thinking, oh, Gee, that would be really nice right now.
But of course, it didn’t happen. However, I do want to talk about the differences here between a permanent raise to your monthly benefits, as we’ve wondered if Congress will ever do anything as far as reforming Social Security, reforming SSI, reforming SSDI, these very important programs, reforming VA, and actually raising these benefits to help out beneficiaries going forward. And we want to explore some of these other programs, like monthly check programs, otherwise known as guaranteed basic income. Now I want to talk through the differences between these because they may look like something very similar. One program may send you a monthly check.
Meanwhile, the other one would just be a permanent raise to your monthly benefits that you’re already receiving. Well, is there a difference between them? Actually, there is. There’s actually a pretty substantial difference between them, and one is significantly better than the other one. Now, I want to talk through the details on this, but don’t get me wrong.
At the end of the day, money is money, right? Cash in the bank account, digits in the bank account other than zero is always a good thing. So at the end of the day, regardless of what would actually happen either way, it would all be very helpful and beneficial to a lot of people. But like I said, one of these is actually better. And I want to talk through the details and why one would actually be better than the other.
So here’s the deal. If there happened to be a permanent raise to benefits, as in all those benefits I mentioned just a minute ago, Social Security, SSDI, SSI, retirement survivors, VA benefits like this. Here’s the thing. All of this would be counted as income. The money that you get from your benefits is counted as income, right? Well, essentially any dollar that you bring in into your possession is income. In the eyes of the IRS, it’s all income, right? However, here’s the problem. If your benefits were bumped up to some threshold, right, all of a sudden you may be bumped into a higher tax bracket. Well, that wouldn’t be good.
That means that your benefits would be taxed at a higher rate and your income would ultimately be higher. Therefore, you may be ineligible for other benefits, like Snap, Supplemental Nutrition Assistance program, otherwise known as food stamps. Maybe you would lose maybe like housing vouchers or maybe utility help or food assistance, anything like this that you may be getting assistance with right now. You may be losing those benefits as a result of a big permanent raise to your monthly benefits because ultimately your income has now gone up. You may be bumped into a higher tax bracket.
Maybe your benefits are now taxable because your benefits are high enough. And then again, you may be losing other benefits as a result. But at the end of the day, remember, taxes and all of this stuff are as a percentage, right? So maybe you’re taxed at 12% or something versus zero or whatever. My point is, taxes are a percentage.
So ultimately, at the end of the day, you would still probably have some money left over. But realistically, it would not be a fun experience if you all of a sudden had to start losing some benefits just because you got a raise to your other benefits. That’s not really the point of all this. Ultimately, if you need help, you need help, and therefore your benefits should not be garnished in any way, shape or form anyway. That’s my opinion on it.
I guess if somebody is getting monthly benefits and ultimately they’re getting Snap benefits as well, I feel like regardless of what the benefit is, they should still be eligible because obviously somebody needs some help and they should get that assistance. So anyway, again, that’s just my take. But also, let’s quickly talk about that. Okay, so now you get the point from the side of a permanent raise to monthly benefits. Now let’s talk about it from the aspect of a monthly check program, otherwise known as something like a guaranteed basic income program.
Here’s what’s really cool about this one. These types of payments are no strings attached payments. Therefore, you get a check, you get a direct deposit, you get some kind of payment whatever into your possession. It is a no strings attached payment. In other words, you can do whatever you want with it.
Okay, that’s cool, too. You can do whatever you want with your benefit as well. But here’s the difference. Monthly check programs generally operate also just like the stimulus checks. Remember those they are nontaxable, right?
Because they’re essentially a tax credit in advance on a tax credit. That’s generally what they are. They’re nontaxable. It’s a nontaxable event. It is not counted as income for those of you who have lower incomes.
And here’s the best part about all of it. It does not offset other benefits. So here’s the thing. Let me give you a quick example. Somebody receiving SSI, for example, your income is very limited.
If you have income over a certain amount, which is not very much, they’re going to start garnishing your SSI benefits. You know that if you receive SSI, you cannot have very much income each and every month before they start taking away a substantial amount of your benefit. Here’s the difference. If you were to get a raise to your benefit, well, then you may be losing some of your Snap benefits. However, if you were to be eligible for a monthly check program, check it out.
You could get all of your SSI benefits. And then on top of that, you could still get a monthly check from a monthly check program, like a guaranteed basic income program. And it would not impact your SSI benefits. It would not impact your Snap benefits. It would not impact any of your housing vouchers, your rental assistance, your utility assistance, any of these things.
Nada. It would not do anything to it. So that’s pretty cool right there, right? Non taxable not counted as income, and it does not impact other benefits. So I guess the question to you would be, which one do you think is better now, understanding this, a monthly check type program, like a guaranteed basic income program or a permanent raise to your monthly benefits?
Yeah, I think the answer is pretty clear. However, I want to make it very clear, though. At the same time, if Congress came to us and said we’re not going to do a monthly check program, but we’re willing to do a permanent raise to your monthly benefits of $200, would we say, no, we don’t want that. We want a monthly check program. No, let’s not kid ourselves.
We’d be all over it. And we would be glad to take a raise to our monthly benefit. So I just wanted to point out the differences between the two. A monthly check program is by far, in my opinion, based on the research that I’ve done and everything that I understand about these in my opinion, again, I could be totally wrong. And it may be different for each individual person in your specific situation, but in whole, in general, across the board, a monthly check type program, as in a guaranteed basic income program, is significantly superior to a permanent raise to benefits for all the reasons that I laid out just a second ago.
But again, it may be different based on each individual person’s situation, but for the most part, a monthly check program would be pretty much better for just about everybody for all those reasons, not taxable, not counted as income. And it would not offset or garnish other benefits. And I think all of us understand how that goes, right? Even just a small cost of living adjustment of $20 a month offsets your snap benefits. I mean, who understands that?
Yeah, we all do. Because we all know this. We know how the programs work, right? The Cola raise comes in, it bumps up your benefit, $20 or $14 or $22 a month, and all of a sudden they come back and they say, hey, we see that your income has gone up. Sorry, we’re reducing your snap benefit by $25 a month now or whatever.
You know the case, I think all of us in this community understand how the programs work like this. Anyway, I want to break this all down for you. Interesting things that are going on out there. A monthly check program, guaranteed basic income, universal basic income monthly checks, and programs like those benefits I mentioned in this topic, Social Security, SSDI, retirement survivors, SSI, VA those programs. Anyway, I’m here to help you out in any way that I can.
I’m here to keep you informed. I’m here to keep you updated. I’m here to help you out. So again, if you haven’t done so, make sure to subscribe down below. Share this topic with your friends, family, social media. thank you.