Robert Reich on Chained CPI (the proposal to cut Social Security benefits)

Robert Reich has created a petition:

Mr. President, the chained CPI is a cut to Social Security benefits that would hurt seniors–it’s an idea not befitting a Democratic president. If you want to reform Social Security, make the wealthy pay their fair share by lifting the cap on income subject to Social Security taxes.

There are currently 149,726 signatures.  You can add your name by clicking the link above.

Here is the video that goes along with the petition.

Robert Reich explains that the chained CPI takes into account the fact that when certain items get too expensive, people substitute cheaper items. Thus the CPI based on a fixed basket of goods overestimates the effective CPI. Since the current CPI is not specialized to senior citizens, it already underestimates the inflation rate in what seniors buy (health care). With some Seniors eating dog food to make ends meet, what does the President want them to eat instead when dog food becomes too expensive?

Given my previous post Investigation Reveals Trillions Hidden in Tax Havens, my comment as I signed the petition was:

Go after the $32 trillion in illegally hidden, and untaxed bank accounts before you go after Granny’s Social Security.


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