BY MAX RICHTMAN, NCPSSM PRESIDENT/CEO | DECEMBER 26, 2012
Message from Washington: Seniors, retired veterans, and the disabled will pay down our nation’s debt
“Too many Washington politicians clearly hope middle-class Americans simply won’t notice billions of dollars in Social Security benefit cuts included in proposals changing the current cost of living allowance formula to a stingier chained CPI. I promise you, seniors and their families will notice.
If news reports are correct and the White House is considering this benefit cut, then President Obama has broken faith with seniors and his commitment to keep Social Security out of the deficit debate. The chained CPI would mean an immediate benefit cut of $130 per year for the typical 65-year old retiree and would grow exponentially to a $1,400 cut after 30 years of retirement.
Contrary to the political spin, this chained CPI proposal isn’t a “tweak” or an “adjustment,” it’s designed to cut benefits and raises taxes, largely on the poor and middle class, totaling $208 billion over ten years. $112 billion of those benefits cuts come from Social Security alone with up to $24 billion coming from VA benefits and civilian and military retirement pay cuts.
Seniors will have received an average COLA of 1.3 percent over 4 years with no increases in two of those years. Arguing that is too generous shows how out of touch some our political leaders have become with the real-world economic realities facing average Americans. Adopting the chained CPI is nothing more than a political slight of hand targeting our nation’s middle class and poor and should be rejected by the President.”
The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters. Visit www.ncpssm.org (National Committee to Preserve Social Security and Medicare).