Chained CPI for Social Security would hurt seniors
Using a chained consumer price index to adjust Social Security benefits for inflation would make it even harder for seniors to keep up with the cost of health care. So why are Democrats proposing it?
The White House and prominent Democrats are talking about reducing future Social Security payments by using a formula for adjusting for inflation that鈥檚 stingier than the current one. It鈥檚聽called the 鈥淐hained CPI.鈥� I did this video so you can understand it 鈥� and understand why it鈥檚 so wrongheaded.聽聽
Even Social Security鈥檚 current inflation adjustment understates the true impact of inflation on the elderly. That鈥檚 because they spend 20 to 40 percent of their incomes on health care, and health-care costs have been rising faster than inflation. So why adopt a new inflation adjustment that鈥檚 even stingier than the current one?
Social Security benefits are already meager for most recipients. The median income of Americans over 65 is less than $20,000 a year. Nearly 70 percent of them depend on Social Security for more than half of this. The average Social Security benefit is less than $15,000 a year.
Besides, Social Security isn鈥檛 in serious trouble. The Social Security trust fund is flush for at least two decades. If we want to ensure it鈥檚 there beyond that, there鈥檚 an easy fix 鈥� just lift the ceiling on income subject to Social Security taxes, which is now $113,700.
Why are Democrats even suggesting the inflation adjustment be reduced? Republicans aren鈥檛 asking for it. Not even Paul Ryan鈥檚 draconian budget includes it.
Democrats invented Social Security and have been protecting it for almos 80 years.They shouldn鈥檛 be leading the charge against it.