"And he’s probably not even going to gain anything with Republicans" because they don't want SS fixed or Medicare fixed. They care only about taxes on their rich donors.Here is what Politico has to say.
Chain CPI primer: Obama's buzzword explained
What it does: Chained CPI would lower the cost-of-living adjustments for senior citizens who receive Social Security, veterans’ benefits, and other payments by switching to a different Consumer Price Index that grows more slowly.
What it could save: $130 billion. <<<<< Seems your Totals weren't all that accurate!
How it works: The new measure assumes that people change their buying habits when things become more expensive, so they don’t need their benefits to rise as much every year. If they’re buying groceries, for example, and the price of steak is rising, they could buy chicken or fish instead.
The pitfalls: Not everything works like buying groceries. Seniors tend to have more health care needs than therest of the population, and if their cancer treatment is getting more expensive, they have to go to their oncologist — they can’t get it from the CVS Minute Clinic.
But Obama would face a big backlash from Democrats – and from key allies like AARP and veterans’ groups – if chained CPI became part of a final deal. Liberals warn that it would take too big a bite out of Social Security benefits to seniors, who have expenses they can’t cut easily, especially medical care. AARP is sounding the alarms, warning that a 92-year-old senior would lose more than 8 percent of his or her Social Security benefits.
Obama’s offer to Boehner says it includes “protections for vulnerable,” but doesn’t give details. And Obama is insisting that Republicans would only get this kind of concession if they agree to more tax increases, which is a nonstarter right now.
And he’s probably not even going to gain anything with Republicans — because as Boehner’s office pointed out Friday, the chained CPI would also raise tax revenues by about $100 billion. That’s because it affects how the tax brackets are calculated. If inflation grows more slowly, the tax brackets each year are raised more slowly – so more people’s incomes will push them into higher tax brackets each year, and they’ll end up paying more taxes.....snip~
Chain CPI primer: Obama's buzzword explained - POLITICO.com Print View
Aint it the truth.