European Stars And Stripes (Newspaper) - July 27, 1987, Darmstadt, Hesse                                Page 4 the stars and Stampes monday july 27,1987 social Security recipients May get 4.2% increase Washington a the nation s 38 million social Security recipients could get the biggest Cost of living in crease in january that they be received in More than five Vears government Statis tics suggest. A new social Security administration analysis done As pan of the govern ment s midyear review of the budget that is due out ecu month. Projects inc in crease at 4.2 percent up from inc 3.7 percent forecast made in april. That would Dwarf last january s 1.3 percent Rise and would be the highest Cost of living adjustment in social Secu Rity and other Federal benefits indexed to inflation since a 7.4 percent boost in the Middle of 982. The new estimates taken with other newly revised figures suggesting that the budget deficit will narrow in 1987 but Widen again in i988, for administration budget officials. They Nolc thai the est Imalis indicate that the government will have to spend More on the Benefit increases than anticipated. Even so some private analysis suggest that the Benefit increases could be even higher possibly approaching i per cent. That is More than the expected rate of inflation for All of 1987. Most analysis expect inflation to be in the Vicinity of 4 percent to 4.5 percent his year. A lot of people who Are optimistic on the budget deficit Don t realize that the Cost of indexed programs will Rise significantly while the income base is not rising significantly said Lawrence. Chime Rene president of we non Econometrics in Philadelphia. Even if inflation moderates at the end of inc year As Many economists Are predicting that would t make any differ ence in figuring social Security Benefit increases. They Are calculated in septem Ber at the end of the fiscal year. Thus a bulge in prices earlier this year due to rebounding Oil costs has already guaranteed social Security recipients at least a 4 percent Benefit increase even if the consumer Price Index rises at Only 0.3 percent a month from july to sep tember according to labor department analyst Patrick Jackman. The increase in june according of Fig ures released last week was 0.4 percent.  followed increases of 0.4 percent and 0.5 percent in april and May respectively. The consumer Price Index used for so Cial Security calculations the Index for Urban wage earners and clerical  is slightly different than the More widely reported Index for ill Urban  which showed increases of 0.4 percent in april and june and 0.3 percent in May with three months still left in fiscal j987 july. August and september beneficiaries already Are entitled to a 3.4 percent increase even if there was absolutely no inflation in this last Quarter according to Phil Gambino a spokesman for the social Security administration. Social Security benefits Are adjusted upward each january based on changes in consumer prices from the third Quarter of one year through the third Quarter of the next. Social Security pays out More than $200 Billioni a year to almost 38 million retirees disabled workers and their families. It costs $2 billion in extra benefits for each percentage Point that consumer prices go up annually. Social Security Benefit increases in the past five years were 7.4 percent in june 1982,3.5 percent in january 1984,3,5 per cent in january 1985, 3.1 percent in Jan uary 1986 and 1.3 percent in january 1987. Economists suggest that the higher Cost of living benefits for social Security recipients Are bound to increase pressure for higher wages possibly adding further to expectations of increasing inflation in the months to come. The better to see you with temperatures his in the 90s nod the bluing summer Sun just keeps on shining but Rebecca Fabrino of Brookline mass., is prepared. She inns How easy in is to lose sunglasses to the Beach or off the Side of a Bott so she s keeping an extra pair in Reserve Well five id be Cha cd. Irs seizes $10.35 savings of 12-year-old boy Chesapeake a. A the internal Revenue service seized the $10.35 life savings of a 12-year-old boy because of his parents s900 tax debt and he indignant youngster wants president Reagan to do something about it. Greetings from Virginia Gary d. Keffer wrote to the president i regret to inform you Hal there is once again Trou ble in the colonies. This time in does not involve a tax on Lea. I am now feeling distrustful of the United slate government due 10 my financial devastation he said in the letter written saturday. Gary a Slraight a seventh grader at mount pleasant Christian Day school said he earned $5 of inc Money in his Bank account dumping garbage feeding the dog and washing the car. The rest was a birthday gift from his grandmother. His father Gary e. Keffer received a letter last week from Chesapeake Bank & Trust saying that the irs had taken Money from three family members accounts to pay the overdue taxes. In Addi Tion to $700 taken from Kcf tar s account. 17 was removed from his wife s and the 110.35 from Gary s. Kelter said he and his wife have been paying off takes owed for i9s5 in s200 Mon my instalments and missed a monthly payment about three months ago. Keffer Bent the overdue payment july i he said but the irs apparently proceeded to collect the entire remaining balance. Keffer speculated that the government took his son s Money because his wife s social Security number is on the boy s account. An irs spokeswoman in Richmond said she could not comment on the Case. Susan Linden Brooks said the irs Gener ally begins collection efforts after Send ing four notices about four to six weeks apart. The elder Keffer said he called the irs regional office in Memphis tcnn., but an official there denied thai the irs had taken his son s Money. They to Ltd to blame in on the Bank Keffer said. To appease his son the elder Keffer gave him $10. He put it Back in the Bank but he was a Little leery wondering if they were going to go Lake it again the father said. But Gary said he wants his Money Back from the irs nol his dad. I am not mad at my dad in is nol his fault Gary said. The irs ought to do a Little More research before they go Tak ing somebody s  Gary said he was saving Money to re store a i96s Mustang Fallback parked in his parents Yard a project he figures will Cost $2,000 to j 3.000. In a similar Case earlier this month the irs seized s70.76 from the account of 9-year-old Carmin Fisher to pay her grandpa rents taxes. Her grandmother was listed As guardian on the account at key Bank of Oregon in Harrisburg Ore. Carmin s infuriated Grandfather Charles Fisher told the Story to the Reg Isler guard newspaper in Eugene Ore. The same Day the newspaper published the account the is relented and gave Back Carnin s Money which Shehad been saving in pennies for six years. We thought this must be happening everywhere said her grand Molher Bel Tyc Fisher. We thought we would set the example. She did t owe this Debl. She s 9 years old. I was our  sword wielder holds off 7 policemen Schaumburg ill. A a Man who caused a Chain reaction car wreck burst from his vehicle and used a 34-Inch sword to hold off seven armed police officers authorities said. The Guy apparently thought he was Conan the barbarian said Schaumburg police sol. Terry Mcgraw describing the arrest saturday of Phillip Schlosser 26. In this Chicago suburb. You be got to understand that if a barbarian with a word goes against a whole Bunch of Guys with guns he s going to  Mcgraw said. Police officers said Schlosser caused a Chain reaction Accident when his car rear ended a jeep thai then crashed into the Side of another car. They said Schlosser drove away from the scene of the Accident but returned a few minutes later. O ulcers chased Schlosser to inc Park ing lot of Schaumburg High school where his car struck a parked school bus. They said he then ran out of his car waving the sword. It looked like something a Marine would have with his dress uniform soul sgt. Patrick Hamill. Hamill said police Drew their guns and formed a semicircle around Schlosser. Hamill said he fired a warning shot in the air and then aimed at Schlosser. Schlosser said go ahead and shool me and began laughing. Schloser was arrested after an officer crept up behind him and smacked him on inc head with a Nightstick. Lie was charged Wilh seven counts of assault one count of Battery and one count each of resisting arrest driving under the influence of alcohol and Leav ing Llie scene of an Accident