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New Inflation Gauge Would Cut Benefits, Hike Taxes

Wednesday, December 5, 2012 - 6:46 AM
From AP via Boston.com
Tweaking the way the government measures inflation sounds like an obscure method to help reduce budget deficits, but over time it would lead to significantly lower Social Security benefits while increasing taxes, mainly on low- and middle-income families.
[...]
The inflation measure under consideration is called the Chained Consumer Price Index. On average, the measure shows a lower level of inflation than the more widely used Consumer Price Index.

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Sounds to me like this is just more gaming of the CPI to the detriment of savers who face an ever growing challenge of protecting their savings from inflation.
7
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,053
1. Wednesday, December 5, 2012 - 7:52 AM
You are right on the mark in your evaluation of this proposal Ken. It's nothing but another ploy to place the deficit burden on the backs of those that are least able to afford it.
4
ShorebreakShorebreak2,607 posts since
Apr 6, 2010
Rep Points: 14,112
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