Obama Budget Said to Drop ‘Chained CPI’

The White House says it is dropping a proposal that would have lowered the cost-of-living adjustments for Social Security and other government social programs, according to published reports. President Barack Obama had previously proposed tying inflation adjustments to the so-called chained CPI, which measures inflation more conservatively, in exchange for tax increases. Republican lawmakers, who have backed the chained CPI,  didn’t go along with the deal. Politico reported a White House official saying: “Over the course of last year, Republicans …

Ronald Reagan’s 9 Wisest Words About Social Security

The following is a guest post by David Certner, AARP legislative policy director. The last time we made significant changes to Social Security – including adjustments to benefits – was the 1983 Social Security amendments. At the time, Social Security had less than a year’s worth of solvency, and a bipartisan agreement to put Social Security on sound financial footing was essential. That legislation, negotiated by President Reagan and Democratic House Speaker Tip O’Neill, focused on what was needed protect …

Changes to Social Security COLA Could Hurt Retirees

With lawmakers under the gun to avert a slew of impending tax hikes and spending cuts scheduled to kick in on Jan. 1, Social Security advocates fear that harmful changes to the program could be crammed into a last-minute budget deal. President Obama has said he’ll waste no time in seeking a bipartisan solution to the fiscal crisis. But AARP told Congress in a letter Thursday that any budget deal should not include a measure known as the chained Consumer Price …