2016 Postmortem
In reply to the discussion: Why President Obama isn't caving [View all]BlueCaliDem
(15,438 posts)what people who can actually see through the panic, think. People like Paul Krugman:
"Switching from the regular CPI to the chained CPI doesnt affect benefits immediately after retirement, which are based on your past earnings.What it does mean is that after retirement your payments grow more slowly, about 0.3 percent each year."
So once again, chained CPI is not a cut in baseline benefits in Social Security. Even Paul Krugman admits that initial benefits are determined by one's earnings, but that chained CPI would reduce the rate of growth of those benefits by about 0.3%. If you believe that such slowing of the rate of growth is a "benefit cut," you'll need to tell me that cutting the rate of growth of defense spending is a "cut" in defense spending. With a straight face. You can't do it, can you?
Also, if nothing is done, there will be a 22% benefit CUT to S.S. benefits in 2035. Hm. Which is a greater? 0.3% or 22%?
Oh, and the most vulnerable seniors are exempt from the chained CPI.
As for removing the income withholding limit, can you cite the 218 U.S. House Reps and 60 Senators, by name, who'll vote for that? No? Then why are you accusing the President of caving? Isn't Congress caving? Place the blame where it rightfully belongs: Congress. Just hope that President Obama lengthens and strengthens S.S. or we can wait until a Republican president with a Republican controlled Congress gets to do it.