The White House and prominent Democrats are talking about reducing future Social Security payments by using a formula for adjusting for inflation that’s stingier than the current one. It’s called the “Chained CPI.” I did this video so you can understand it — and understand why it’s so wrongheaded.
Even Social Security’s current inflation adjustment understates the true impact of inflation on the elderly. That’s because they spend 20 to 40 percent of their incomes on health care, and health-care costs have been rising faster than inflation. So why adopt a new inflation adjustment that’s even stingier than the current one?
Social Security benefits are already meager for most recipients. The median income of Americans over 65 is less than $20,000 a year. Nearly 70 percent of them depend on Social Security for more than half of this. The average Social Security benefit is less than $15,000 a year.
Besides, Social Security isn’t in serious trouble. The Social Security trust fund is flush for at least two decades. If we want to ensure it’s there beyond that, there’s an easy fix — just lift the ceiling on income subject to Social Security taxes, which is now $113,700.
Why are Democrats even suggesting the inflation adjustment be reduced? Republicans aren’t asking for it. Not even Paul Ryan’s draconian budget includes it.
Democrats invented Social Security and have been protecting it for almos 80 years.They shouldn’t be leading the charge against it.
We need your help to propel Truthout into the new year
As we look toward the new year, we’re well aware of the obstacles that lie in the path to justice. But here at Truthout, we are encouraged and emboldened by the courage of people worldwide working to move us all forward — people like you.
If you haven’t yet made your end-of-year donation to support our work, this is the perfect moment to do so: Our year-end fundraising drive is happening now, and we must raise $150,000 by the end of December.
Will you stand up for truly independent, honest journalism by making a contribution in the amount that’s right for you? It only takes a few seconds to donate by card, Apple Pay, Google Pay, PayPal, or Venmo — we even accept donations of cryptocurrency and stock! Just click the red button below.