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View Diary: My view of chained CPI at age 67 (48 comments)

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  •  of all of the alleged Social Security "reforms" (0+ / 0-)

    being discussed in Washington, the chained CPI, especially one that adheres to the Simpson-Bowles Commission's recommendation for an initial increase to help compensate those on the lower end of the income scale for future cost of living reductions, is among the least harsh so-called "reforms" discussed for Social Security in many years.

    For years, Republicans have been pushing for things like increasing the retirement age and creating vouchers, which would be the worst conceivable so-called "reforms" to Social Security.

    (All of these are "so-called" reforms in my book because none of them are acceptable to me on their face, they are not "reforms," but reductions in program benefits for some people paying into the system compared to others, making them blatantly unequitable, unfair and, worst of all, they are all completely unnecessary, since there are far better ways to ensure to the long-term viability of Social Security than ANY of these proposals, including the chained CPI.)

    However, having said that, of all of the Republican ideas about changing the system, to me, the chained CPI could, conceivably, be the least harsh of all, depending on exactly how it is implemented. If it shuts the Republican'ts up and is done the right way, at least Republicans will not have been allowed to begin achieving their true objective which is to start killing the program off, even if it starts with a slow death spiral.

    There are certain ways of implementing a chained CPI that will have minimal impact on those who rely on Social Security the most.

    •  Respectfully, when you say (0+ / 0-)

      '. . . the chained CPI, especially one that adheres to the Simpson-Bowles Commission's recommendation for an initial increase to help compensate those on the lower end of the income scale for future cost of living reductions.'

      If you mean this:

      RECOMMENDATION 5.1: MAKE RETIREMENT BENEFIT FORMULA MORE PROGRESSIVE.

      Modify the current three -bracket formula to a more progressive four - bracket formula, with changes phased in slowly.

      Change the current bend point factors of 90%|32%|15% to 90%|30%|10%|5% by 2050, with the new bend point added at median lifetime income.

      I would agree if they change the bend points, and the reduction in benefits only affect the top 20%.

      According to Janice Gregory of NASI, the bottom four quintiles of beneficiaries rely on Social Security as their primary source of retirement income.

      None of these folks need ANY reductions in benefits.  But probably the top 20% could weather a reduction, and still have a decent standard of living.

      When it's truly necessary, raise the cap for taxable wages, and implement a small increase in the payroll tax.  ;-)  Only consider 'means testing' if absolutely necessary.

      And, when the time comes, address the problem.  But the time is not now.

      Mollie

      "If a dog won’t come to you after having looked you in the face, you should go home and examine your conscience.” -- Woodrow Wilson

      hiddennplainsight

      by musiccitymollie on Sun Mar 17, 2013 at 02:24:03 PM PDT

      [ Parent ]

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