On the recordDecember 20, 2012
Will seniors be pushed off the fiscal cliff? Social Security did not cause the deficit, but the White House's plan to lower Social Security cost-of-living benefits could eventually reduce seniors' annual benefits by hundreds of dollars. The gimmick is called the chained Consumer Price Index. The chained CPI works this way: As the cost of living goes up, seniors inevitably turn to cheaper alternatives. For example, if seniors eat steak, but then can't afford its higher price, they can switch to something cheaper--like cat food. The cost of living calculation would chain to the cheaper item--cat food. So the less you pay for food, the less benefits you get. The chained CPI benefit cut will chain aging seniors to a poverty of choices, a lower standard of living with cheaper products. The chained CPI formula doesn't take into account seniors' rising health care costs. If it did, benefits would go up. There is no justification to cut Social Security benefits. ``No'' to throwing seniors off the fiscal cliff. ``No'' to a cat food Christmas. ____________________
