From: Alex Hesse-Siegert <alex@positive-solutions>
Subject: Where's the Incentive?
I am a Disability Benefits Counselor I spend much of my time helping disabled individuals understand the rules and regulations regarding their attempts to earn income. I find it increasingly harder to answer the question "Why should I bother?". Those who are disabled and wish to return to work face a myriad of barriers created by the "work incentives." Currently there is a plan to increase the Substantial Gainful Activity Level (SGA) The gross monthly earned income amount which is used to determine whether a person keeps their benefit check during the 36 month extended period of eligibility(EPE). The increase is $200 from the current level of $500 to $700 per month.(This is the first adjustment in almost ten years, and will still leave non-blind beneficiaries $410 short of the current $1,110 SGA level afforded to those who are blind.) I was talking with a person I respect who works for Social Security She was excited about this increase her words were "This will allow our clients to earn $200 more without losing their benefit checks." My response was "Yes, but what will it do to assist those who want to become independent and break through the newly raised glass ceiling of poverty? she was silent. I continued to explain my concern as follows: A client we'll call him Bill is by Social Security's own reasoning receiving the average benefit check amount which is $733 per month. If Bill who is in the EPE earns the SGA amount of $700 he will lose $33 off the top (The difference between the proposed SGA and the his SSDI benefit check amount.) His $700 earned income is subject to taxes which means because he is paid once a month and claims no exemptions he will lose approximately $127 in taxes combined this equals approximately a loss of $160. This means that for his effort Bill has what seems to be $40 in actual spendable income, However, Bill will lose a little more because he is subject to state a L&I; tax, luckily for Bill our state doesn't levy a state income tax. Bill also has increased costs due to his employment, for incidentals such as work clothes and laundry and transportation. If that is not enough, Bill and many of those like him rely on a combination of other subsidized programs to survive, such as food stamps, housing, child care and state funded medical assistance each uses earned income as a criteria for program involvement, which means Bill and these individuals stand to lose in those areas as well.
My questions are these if you were Bill, wouldn't you question the value of work and why you should bother?. . .Would you still believe in the American Work Ethic? and that if you work you get ahead? As a person who is interested enough to be involved in this forum can you answer the question Where's the incentive?
The disabled clearly lose more buying power by attempting to work.
The rules and regulations themselves have become barriers to independence. As we discuss these issues, Congress is set to enact other laws such as Senate Bill S.331 which although looks good, puts more emphasis on the creation and funding of "Employment Networks" from a projected $3,500,000,000 trust fund savings created by returning the disabled to work; than they do assuring these individuals that they will be able to have a realistic earning potential on which to transition to independence.
As we call for fiscal responsibility we too must call for State and Federal partnerships committed to clearing the path to independence for the disabled. A unified set of regulations is needed to implement success.
