Huffpost: Joe Biden Led Budget Talks Where Social Security Cuts Were On The Table

[iwannaknow]

I remember the Chained CPI proposal and was aghast that the Obama admin via Biden would propose such a thing for any reason. Fortunately it did not go through; otherwise social sec recipients might be wondering why they are getting poorer with each passing year. Cuts to programs can take many forms, and this was among the most insidious.

https://www.huffpost.com/entry/joe-biden-2011-budget-talks-social-security-democratic-primary_n_5e2dcbffc5b67d8874b423fe

<excerpt>

"
It’s a technical tool called the “chained” consumer price index that accounts for the way consumers react to rising prices by substituting for cheaper alternatives when possible. It was an appealing idea for the various bipartisan deficit groups because it could simultaneously reduce spending on benefits and raise tax revenue, but because it’s so technical, it’s less obvious as a benefit cut or a tax hike.

The Biden group considered applying chained CPI to both Social Security benefits and tax brackets, one source said. Since tax brackets are adjusted for inflation each year, if they go up more slowly, then more wages — which grow faster — wind up subject to the higher-percentage brackets. Obama’s deficit commission and his Grand Bargain also considered the inflation measurement change; he went on to include it in his fiscal 2014 budget.
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[gab13by13]

1. I remember it well, with horror.

Thank god that Republicans were too stupid to accept the offer. If chained CPI had been agreed to it would have eventually led to the demise of SS, Medicare, and Medicaid.

[redstateblues]

2. Welcome to DU!