Many people are worried President Obama is going to move Social Security to the Chained CPI method for COLA adjustments. The idea is something to be afraid of. It is essentially a benefit cut for people who cannot afford another cut. Thus falls right in with the Republicans assault on everyday Americans.
Chained CPI explained in the easiest possible way is as follows. To figure your COLA they determine prices on a basket of goods. If the goods go up, normally your COLA increases. Chained CPI says that instead of a raise you will buy different goods in order to make up the difference. Instead of buying chicken you would buy ground beef for example. Where this doesn’t work is when a large portion of their income goes onto medical bills. The Chained CPI cuts their benefits, thereby putting them into a bigger financial hole.
Of course this only effects the elderly, the poor or the disabled. Republicans continue protecting the rich. As they are pushing Chained CPI for these people, they are fighting for larger tax breaks for the wealthy. The tax breaks for the wealthy obviously created so many jobs (sarcasm).
President Obamas budget will only put Chained CPI in effect if he gets the balanced approach he is looking for. More tax revenue, closing loopholes that cost us billions of dollars a year, cutting corporate welfare and eliminating tax havens. That is not all, but some of what he wants. If Republicans don’t work with him the Chained CPI is not going to happen. Give the president a chance and stop listening to conservative media bashing him. He will do the right thing.
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