Gang of Six Plan Would Raise Taxes on Low-Income Workers

[OhioChick]

Posted: 7/21/11 11:17 AM ET

The chained Consumer Price Index (CPI), a provision included in the Gang of Six's deficit reduction package, raises taxes on low-and moderate-income workers, according to a recent report by the Joint Committee on Taxation. This belies the claim that the harm done to the middle class by the chained CPI's benefit cuts would be partly off-set by the revenues it would generate.

The chained CPI, a change in the inflation formula that would result in cuts to Social Security, VA benefits, Supplemental Security Income (SSI), and other benefits, as well as increases in revenue, has been on the table in deficit talks for months. The measure has specifically been seen as a possible point of bipartisan compromise, because it both cuts spending and raises revenues.

The provision has gained even more momentum now that the Gang of Six has included it in their recently unveiled deficit reduction plan.

Progressives have been critical of the benefit cuts that would result from the chained CPI, citing the threats they pose to vulnerable populations like the very elderly and disabled; the failure of the measure to accurately account for the higher health care costs of seniors and disabled persons; and the fact that the cuts would begin right away, falling on current beneficiaries, who have not had time to plan accordingly. Some have pointed out that the change may drive thousands of seniors into poverty.

More: http://www.huffingtonpost.com/daniel-marans/gang-of-six-debt-ceiling-_b_905202.html

[county worker]

1. If you are on a fixed income how do you plan accordingly?

You look for cheaper brands of cat food or something?

[Abq_Sarah]

6. I'm guessing as long as your're able to purchase

50lb bags of rice, the government figures you're meeting your nutritional needs.

[jtown1123]

2. Huge K&R

[PA Democrat]

3. "Shared sacrifice" will go down in history with other misnomers

such as Bush's "Healthy Forests initiative , his "Clear Skies" initiative, and Operation Iraqi "Freedom".

:mad:

[anarch]

4. they should try to get some kind of droit de signeur/primae noctis provision in

for, like, CEOs and members of the wealthiest 14 families in America while they're at it. Or maybe some kind of law that allows three-time drug offenders to be treated as chattel or something. Hell, why not? This is supposed to be some kind of get-it-all-done-now grand bargain or something, right?

[Abq_Sarah]

5. The gang of six plan

Isn't going to be accepted by the house. As for the chained CPI, politicians on both sides of the aisle seem to be infatuated with the idea so it's going to take some major hell raising to make sure it's not implemented.

[emulatorloo]

7. Very true. Gang of Six is dead on arrival