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Published: Monday 07 October, 2013

men fashion online store men fashion online store ?Obama Gives the GOP What It Hasnt Asked For

The Presidents budget calls for reducing future Social Security payments by using a formula for adjusting for inflation thats stingier than the current one. Its called the chained consumer price index.

Its a bad idea that will unnecessarily hurt the nations seniors.

The White House reasons that when the price of certain goods goes up, consumers typically switch to lowercost substitutes. If the price of steak rises, they switch to hamburger. That means Social Security payments can be reduced by over $100 billion in the next ten years men fashion online store if seniors simply choose less expensive items.

See a collection of political cartoons on the budget and deficit.

But the elderly spend a much larger share of their incomes on healthcare than the rest of us. And when p men fashion online store rices go up on some aspect of healthcare, seniors cant readily switch to cheaper substitutes. If a doctor orders a particular test or procedure, theyre not going to argue.

In addition, the costs of healthcare have been rising faster than inflation. So its likely that Social Securitys current adjustment for inflation already understates the true impact of inflation on seniors. Theres no reason to compound the damage by reducing the inflation adjustment further.

Social Security benefits are already meager for most recipients. The median income of Americans over 65 is under $20,000 a year, and most depend on Social Security for more than half of it. The average Social Security benefit is less than $15,000 a year.

Besides, Social Security hasnt contributed to the federal budget deficit, and its not in serious trouble. The Social Security trust fund is flush for at least two decades.

Check out our editorial cartoons on President Obama.

If we want to ensure its solvency beyond that, we dont need to hurt current or future beneficiaries. A better fix would be to raise the cap on income subject to men fashion online store Social Security taxes, which is now $113,700. Or fully tax the payout for wealthy beneficiaries, who are now taxed on only 85 percent of their benefits.

A chained CPI for Social Security doesnt even make sense as a negotiating strategy. The Republicans havent asked for it. Not even Paul Ryans draconian budget includes it. men fashion online store