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Why the Chained CPI is Wrong for Social Security
Posted By David Certner On April 11, 2013 @ 7:53 am In Where We Stand | No Comments
Yesterday, the President included Social Security cuts in his budget through a proposal called the “chained CPI”. Let’s take a minute and break down exactly what that means:
The chained CPI would modify the way the cost-of-living-adjustment (COLA) for Social Security is calculated, cutting benefits by $127 billion dollars over the next 10 years alone. That comes out to over $2000 in lost benefits for the average senior.
Some have tried to defend this unprecedented inclusion of Social Security benefit cuts in the President’s budget. Since the last Social Security package in 1983, Washington has never cut Social Security benefits. In fact, we have strong rules in place to prevent Social Security from being used as a piggy bank for deficit reduction. Yet the President’s budget choose to ignore the fact that Social Security is a separate, self-financed, off-budget program that has sufficient assets to pay full benefits for the next 20 years (and 75% of benefits beyond that time). In fact, the President blatantly breaks his earlier promise to not cut the Social Security COLA.
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Here are the facts you need to know to refute proponents of the Chained CPI:
So what can you do? Go to www.aarp.org/whatyoulose to calculate exactly how much your Social Security benefits would be cut – then take action. Urge your members of Congress to reject this harmful change and instead find responsible solutions that keep the promise to current seniors and future generations.
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