Chained CPI’s Diminishing Returns for U.S. Budget
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April 8 (Bloomberg) -- News that the White House willpropose a new cost-of-living index in the budget it releasesthis week has brought joy to deficit scolds and consternation todefenders of Social Security.
The measure, called the chained consumer price index, wouldlower the annual payment increases for Social Securitybeneficiaries, saving the government money as it lowers thefuture monthly income of retirees and disabled Americans. Thechange would also raise revenue over time because it would causemore taxpayers to wind up in higher marginal brackets.