Sanders: Proposed Social Security Cuts 'Morally Grotesque' Cuts to hit oldest, poorest beneficiaries
- Common Dreams staff
US Senator Bernie Sanders said Tuesday that a "draconian" proposal to chain the cost-of-living increase to the Consumer Price Index is "not only morally grotesque, it is extremely bad economics."
Former Sen. Alan Simpson, R-Wyo., and Erskine Bowles. (Photo: Mark Wilson/Getty Images.)
The Social Security Administration on Tuesday announced a 1.7 percent cost-of-living adjustment (COLA) next year, one of the lowest since the automatic annual adjustments were adopted in 1975.
But benefits for senior citizens and disabled veterans would be reduced under a proposal by former GOP Sen. Alan Simpson of Wyoming and investment banker and former White House chief of staff Erskine Bowles.
The Simpson-Bowles Plan would chain the COLA to the Department of Labor's CPI. That would reduce Social Security checks by 3 percent over 10 years and 9 percent over 30 years—even as the cost of living for the elderly may actually increase, said Dean Baker, co-director of the Center of Economic and Policy Research.