Beaver County Blue

Progressive Democrats of America – PA 12th CD Chapter

Progressive Caucus Head Rejects “Chained CPI” Cut in Social Security Benefits

Posted by randyshannon on December 18, 2012

Grijalva.j[gFOR IMMEDIATE RELEASE

December 18, 2012

Grijalva Rejects Potential Social Security Benefit Cuts Through “Chained CPI” in Latest Floated Year-End Financial Agreement

Washington, D.C. – Rep. Raúl M. Grijalva today released the following statement on the potential inclusion of a so-called chained Consumer Price Index feature in the latest floated version of a financial agreement.

“Federal law has always prohibited Social Security from contributing to the deficit. Any talk of shrinking the program to ‘save money’ is flawed from the start because Social Security is not part of the national budget in the same way as military spending – it’s paid for through a dedicated payroll tax separate from general budgeting.

“Some have suggested that Social Security benefits should be based on a chained Consumer Price Index (CPI), which assumes that when the price of one item rises, people buy something else – no matter how popular or necessary that original item might be. If this change goes into effect, Social Security benefits would stop reflecting the rising prices of popular goods.

“The average Social Security recipient rakes in a whopping $13,000 a year. If we pass chained CPI, projected annual cuts for a typical retiree would be about $560 a year by age 75, $984 a year by age 85 and $1,400 a year by age 95.

“The less money our Social Security recipients – including 9 million veterans – are able to spend, the less money goes to the businesses that create jobs. Chained CPI makes life harder for millions of retirees, weakens Social Security and doesn’t reduce the deficit by a penny. It’s a Beltway fig leaf that I will never support, and I call on my colleagues to make their feelings known as soon as possible before this becomes yet another piece of conventional wisdom that makes things worse.

“Lifting the cap on high earners paying into Social Security is a real fix that would make the program solvent indefinitely. If we want to talk about solutions, let’s talk about that, not inventing reasons to take money from American retirees.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: