Chained CPI Facts

Some in W

ashington are pushing a budget proposal that would cut Social Security benefits by $112 billion over the next 10 years. It’s called “chained CPI” - a proposal that would cut the yearly cost-of-living adjustment (COLA) for Social Security, leaving seniors struggling to keep up with the rising cost of utilities, health care and prescription drugs. As seniors get older, it would only get worse because the cuts would start now and get bigger every year. Washington should focus on finding responsible ways to address our nation’s budget challenges, not cutting Social Security to reduce the deficit. Americans have earned their benefits and they deserve a separate conversation about how to protect Social Security for today’s seniors and strengthen the program for future generations.
Call 1-800-323-2230. Tell your Senators to vote “no” on cuts to
your Social Security benefits.
Top 5 reasons why the chained CPI is the wrong solution
1. It’s a benefit cut. The chained CPI is a significant benefit cut, not some “technical change” as some in Washington would like you to believe.
2. Cuts get deeper every year. The chained CPI benefit cut would start now and get bigger with every passing year, costing seniors, veterans and our nation’s most vulnerable thousands of dollars over their lifetimes.
3. It cuts benefits for today’s seniors. Most politicians promised during the 2012 campaign not to cut Social Security for current seniors. The chained CPI would break that promise, cutting benefits that today’s seniors have earned through a lifetime of hard work.
4. It’s less accurate for seniors. The chained CPI assumes that when the cost of something you normally buy goes up, you will substitute a lower-cost item. This theory falls short since many seniors and veterans spend much of their money on basic goods like prescription drugs, utilities and heath care – items that don’t have lower-cost substitutes.
5. It’s the wrong solution. Americans deserve a separate, national conversation about how to protect Social Security for today’s seniors and responsibly strengthen it for their kids and grandkids.

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