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Obama's New Budget Will Contain The Infamous 'Chained CPI'

Friday, April 5, 2013 - 8:12 AM
President Barack Obama's proposed budget will call for reductions in in the growth of Social Security and other benefit programs by including a proposal to lower cost-of-living adjustments to government social safety net spending, a senior administration official says.

Obama Budget Chained CPI - Business Insider
3
ShorebreakShorebreak2,380 posts since
Apr 6, 2010
Rep Points: 12,706
1. Friday, April 5, 2013 - 10:19 AM
Wonder if this will also be used for the income tax raising the federal income tax we pay each year by lowering the amount of deductions allowed or changing and lowering the bracket creep each year or is just going to be used for retirees? 
2
AllyAlly785 posts since
Jan 16, 2010
Rep Points: 2,281
2. Friday, April 5, 2013 - 10:35 AM
Good question rosie43. This is a negotiation point. The administration appears to want to link Social Security and tax brackets to chained CPI. Republicans only want to apply it to Social Security benefits. In either case, chained CPI will also apply to veterans benefits such as disability and retirement pensions. Those military retirees also receiving Social Security benefits will be double losers.

 
2
ShorebreakShorebreak2,380 posts since
Apr 6, 2010
Rep Points: 12,706
3. Saturday, April 6, 2013 - 8:16 AM
Bloomberg news had an article that I read this morning that stated the chained CPI would also have an affect on bracket creep meaning a small tax increase each year for everyone. "Shared responsibilitly."
3
AllyAlly785 posts since
Jan 16, 2010
Rep Points: 2,281
4. Saturday, April 6, 2013 - 8:16 PM
The budget also (in an article I read) stated that those with incomes of $47,000 would pay higher Medicare premiums. It did not state if that was for single or a married filing and did not state if that was for AGI or MAGI. And it is only the proposed budget. 
2
AllyAlly785 posts since
Jan 16, 2010
Rep Points: 2,281
5. Saturday, April 6, 2013 - 9:02 PM
Re: rosie43 @ 4. Saturday, April 6, 2013 - 8:16 PM

Odds are the can will be kicked down the road again and nothing will be accomplished either way.
2
ShorebreakShorebreak2,380 posts since
Apr 6, 2010
Rep Points: 12,706
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