Obama's Deficit Proposal: Cut Social Security Benefits Indexing Social Security benefits to chained

[midnight]

consumer price index means a cut for all beneficiaries

Lame duck "tweaking" Social Security. (Photo: DonkeyHotey via flickr)
"Chained CPI," a major piece of President Obama's latest proposal in the budget deficit talks, really means, as progressives point out today, a real cut in benefits.

The Center for Economic and Policy Research's Dean Baker explains that in the proposed formula "the annual cost of living adjustment for Social Security benefits would be indexed to the chained consumer price index rather than the CPI for wage and clerical workers (CPI-W) to which it is now indexed."



"You know what this change in CPI means? It means $560 a year when you’re 75, starting at 65. It means $1,000 a year when you get to be 85. That in plain language, in the real world, is called a cut. And so the president, if he were to support that proposal, would be going back on his word." 2011 Bernie Sanders

http://www.politicususa.com/bernie-sanders-cnn.html

Those who would undermine Social Security have advocated a so-called "chained-CPI." That approach changes how the Consumer Price Index is calculated so that a person 65 years old today would earn $560 a year less in Social Security benefits once they turn 75. Benefits would be cut by nearly $1,000 a year once they turn 85. Instead, my sponsored legislation bases Social Security cost-of-living adjustments on a Consumer Price Index for the Elderly, a measure that would increase benefits because it would take into account the real-life impact of rising health care costs and prescription drug expenses paid by seniors.

https://www.commondreams.org/view/2012/08/15-4

[librechik]

1. The Republicans put that on the table. Not the Dems. All the Dems say

NO CUTS!!!

just relax and let the current carry you gently downstream. The media is trying to get you outraged so they can male more money.

Otherwise, show me a link wher President Obama has said "We will change to the chained CPI."

That hasn't happened. Trial balloons have been released and perforated. Carney was walking it back this am.

[Bluenorthwest]

2. Pelosi said it on TV yesterday. Show me where the President said otherwise.

Action has to take place prior to legislation. Urging people to do nothing is a bad bit of advice. 'Wait until it is too late to complain about the public option' they said 'it's a trail balloon'.
If it is a trail ballon, it needs to be shot down not welcomed. Carney? What did he say exactly? You don't quote him. You don't quote the President.
It gets old, old, old. Had we not pressured the President, he's still be preaching against gay people with Rick Warren.

[librechik]

4. BS--I have heard the president say he will veto Bohner's plan. I have not heard him personally say

he is in favor of cutting SS or the chained CPI. Of course no one could ever prove someone didn't say something. I'm asking you to show me wher the president has said something. Much e3asierr for you to prove than me to unprove. Be fair.

[muriel_volestrangler]

3. Here's Carney confirming it yesterday:

Q Yes, Jay, a lot of top Democrats on the Hill, and I think President Obama, spent the campaign season saying, let’s not touch Social Security -- it doesn’t add to the deficit; we can resolve this issue without going to that entitlement program. What is the President’s message to those lawmakers who promised constituents that Social Security would not be touched after the President now has put chain CPI on the table for Republicans?

MR. CARNEY: Well, let’s be clear about one thing: The President didn’t put it on the table. This is something that Republicans want. And it is --

Q But the Republicans --

MR. CARNEY: -- part of his -- if I could please answer Sam’s question, I’d appreciate it. And the President did include it in his counterproposal, his counteroffer, as part of this process, as part of the negotiation process. I would note that this is a technical change -- would be if instated -- to the way that economists calculate inflation, and it would affect every program that has -- that uses the CPI in its calculations. And so it’s not directed at one particular program; it would affect every program that uses CPI. There are also -- as part of the President’s proposals, he would make sure that the most vulnerable were exempted out from this change.

But let’s be clear, this is something that the Republicans have asked for, and as part of an effort to find common ground with the Republicans, the President has agreed to put this in his proposal -- agreed to have this as part of a broad deficit reduction package that includes asking the wealthiest to pay more so that we can achieve the kind of revenue targets that are necessary for a balanced approach to deficit reduction.

http://www.whitehouse.gov/the-press-office/2012/12/18/press-briefing-press-secretary-jay-carney-12182012

Yes, the Repubs put it on the table; and Obama has accepted it.

If you're saying Carney has now walked back what he said yesterday, can you link to it, please?

[midnight]

5. FOR IMMEDIATE RELEASE-Don’t Cut Benefits for Disabled Veterans

December 19, 2012
3:10 PM
CONTACT: Senator Bernie Sanders
Michael Briggs [phone]

“America’s heroes deserve better from a grateful and caring nation,” Barry A. Jesinoski concluded in a letter on behalf of the Disabled American Veterans.

The Veterans of Foreign Wars and Gold Star wives were among 18 veterans’ organizations that signed a separate letter to congressional leaders calling on them to restore fiscal discipline “without reneging on this country’s promises to veterans.”

A change in how annual cost-of-living adjustments are calculated could mean that veterans who started receiving VA disability benefits at age 30 would have their benefits reduced by $1,425 at age 45, $2,341 at age 55 and $3,231 at age 65, according to the Congressional Budget Office.

In addition to disabled veterans, more than 55 million retirees, widows, orphans and disabled Americans could be affected by the switch to a so-called chained CPI, or consumer price index. According to the Social Security Administration, the change would result in $112 billion in reduced Social Security benefits over 10 years. The typical Social Security recipient who retires at age 65 would get $653 less a year at age 75 and would get $1,139 less a year at age 85 than under current law.

http://www.commondreams.org/newswire/2012/12/19-2