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President Obama is Still Pushing the Chained CPI for Social Security...an Immediate Cut in Benefits

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jtown1123 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:23 PM
Original message
President Obama is Still Pushing the Chained CPI for Social Security...an Immediate Cut in Benefits
Why can't he get this through his head that the Chained CPI is very bad policy?

A "Chained CPI" will result in lower COLAS and is an IMMEDIATE cut in benefits to current beneficiaries (very, VERY bad politics)

As it is now, the current COLA is insufficient. The Chained CPI would produce even smaller increases (what's smaller than zero?)

Background Info on Chained CPI: http://www.ncpssm.org/news/archive/vp_cola_changes /




Q My question is about Social Security. I know that one of your ideas to fix the solvency of it is to reevaluate the equation that determines the COLA, the cost-of-living adjustment. But as the law stands right now, we are only taxed on the first $107,000 that we make.

THE PRESIDENT: Right.

Q That means every dime that I make is taxed for Social Security.

THE PRESIDENT: Right.

Q I don't make $107,000. (Laughter.) But that means that

THE PRESIDENT: Somebody said you will

Q Someday, I hope.

THE PRESIDENT: Yes, you sound pretty smart. It sounds like you're going to do just great.

Q Thanks. But that means that people like Mitt Romney only pay into Social Security on the first one-tenth of 1 percent of what they make.

THE PRESIDENT: Right.

Q Can we look forward to you telling the Republicans that it's time that the wealthy pay their fair share? (Applause.)

THE PRESIDENT: Well, firstthis is a very well-informed young man here. (Laughter.) You're exactly right that the way the Social Security system works, there's what's calledthere's basically a cap on your Social Security, which there isn't, by the way, on Medicare. But Social Security, it only goes up to the first $107,000; and you're right, somebody who makeswho has net assets of $250 million and are making maybe $5 million a year just on interest or capital gains or something, just a fraction of it's going to Social Security. I think there's a way for us to make adjustments on the Social Security tax that would be fairer than the system that we use right now.

I do think, in terms of how we calculate inflation, that's important as well.

http://www.dailykos.com/story/2011/08/18/1008266/-Obama...

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sinkingfeeling Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:26 PM
Response to Original message
1. Funny, the only one quoted in the Kos story talking about CPI is the guy asking the question.
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sabrina 1 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:33 PM
Response to Reply #1
4. Actually read the first question and then the President's answer.
So, no, the guy was smart and asked the President for his position before proceeding with his own opinion. The president confirmed that he is looking at the COLA as a way to save money. And this is reprehensible.

I went to the SS website a few days ago where there is a Q&A section for people on SS, SSI etc. It was so sad to see some of the questions from family members of Seniors who have had their benefits go down and who didn't know why.

I cannot imagine why any Democrat would even have considered touching those benefits, or having the gall to say there has been no inflation. That Fund belongs to the people and politicians have zero right to refuse to pay it to them.

Not to mention that benefits ought to be increased right now, not reduced, which would work as a stimulus and it wouldn't even raise the deficit by a single penny. The money is there, those on SS right now PUT IT THERE, NOT the Fed Govt.

HANDS OFF SS!! We should not ever have to say that to a Democrat, but apparently now we do.
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jtown1123 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:40 PM
Response to Reply #4
10. Yes, he agreed he was considering this, thanks.
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jtown1123 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:39 PM
Response to Reply #1
9. But the President agreed he would consider it n/t
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DURHAM D Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:27 PM
Response to Original message
2. If these were responses by George Bush at this point we would say -
god this guy is an idiot.

or

Does he think we are idiots?
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CelticThunder Donating Member (460 posts) Send PM | Profile | Ignore Fri Aug-19-11 01:38 PM
Response to Reply #2
7. That's the standard I use to judge Obama by - would it piss me off if Bush did it?
I don't excuse Obama because he's a Democrat. IMO, it makes it much worse that he is (or claims to be) a Democrat.
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Ozymanithrax Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:32 PM
Response to Original message
3. The difference between fairer and fair...
is vast. The President is not in favor of the rich paying their fair share in Social Security.
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indurancevile Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:35 PM
Response to Original message
5. mitt romney doesn't make his money from wages and obama is full of it too.
Edited on Fri Aug-19-11 01:57 PM by indurancevile
both so-called "sides" spreading confusion.
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uponit7771 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:37 PM
Response to Original message
6. Another misleading Obama bashing OP, bashers have lost creditbility and getting boring by the second
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CelticThunder Donating Member (460 posts) Send PM | Profile | Ignore Fri Aug-19-11 01:39 PM
Response to Reply #6
8. How is it misleading?
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uponit7771 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 02:01 PM
Response to Reply #8
16. He didn't say what the OP said he said, that's misleading. I click the link and do see the president
...presidents own words on the issue just an interpretation starting off with "...that means..."
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jtown1123 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 02:25 PM
Response to Reply #16
18. He agreed he is pursuing this option just as he has proposed it in the past n/t
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scheming daemons Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 02:34 PM
Response to Reply #18
21. He doesn't say that anywhere in the link you provided

You're reading something between the lines that isn't there.
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jtown1123 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:40 PM
Response to Reply #6
11. Misleading how exactly? Thanks.
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sabrina 1 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:47 PM
Response to Reply #6
13. How are his own words misleading?
He was asked a number of questions and he responded to them. Those are HIS words. He admitted that he was 'looking at COLA' as a means of saving money for the Fed. Govt. That is so disingenuous since any COLA made to SS recipients has ZERO to do with the Fed. Budget. I would come from the PEOPLE'S own fund. And for two years now, Seniors and other beneficiaries who so badly need that money, have had their benefits cut, and it did nothing to lower the deficit as it cannot. Meantime the Bush Tax Cuts were extended which is ADDING to the deficit because those cuts directly affect the Fed. Budget.

He responded to questions, there is nothing misleading about publishing his responses. And if I had been asking him questions I would have asked how starving the Elderly and Disabled by not acknowledging inflation (maybe he needs to go shopping for food eg) will in any way help lower the deficit. If anything, it will raise it, for several reasons.

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woo me with science Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:45 PM
Response to Original message
12. Of course he is pushing for it.
He has been pushing for it all along.
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napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:53 PM
Response to Original message
14. I understand that this would cause the COLA to be less, but how
would it affect benefits now? My hubby & I are both on SS only, and although noone has gotten any COLA increase since we've been collecting SS, I don't see how this change could affect the benefits we currently receive.
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indurancevile Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 01:59 PM
Response to Reply #14
15. because you'd receive less under the chained formula. substantially less
within a matter of years.
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jtown1123 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 02:26 PM
Response to Reply #14
19. The formula is designed to offer less in benefits than the current one. It's highly inaccurate n/t
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eridani Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 10:48 PM
Response to Reply #14
25. Think of it as compound interest, only in reverse
Instead of getting richer as you age, you will get poorer.
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indepat Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 02:19 PM
Response to Original message
17. Maybe the president thinks that all who paid social security payroll taxes all their working lives
Edited on Fri Aug-19-11 02:22 PM by indepat
should share the sacrifice the uber-wealthy and large corporations have endured these past 30+-years although they had been sucking mightily at the public welfare teat. After, fair is only fair. :patriot:

Edited to add should
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SammyWinstonJack Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 02:33 PM
Response to Original message
20. I'm really starting to resent Obama.
x(
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dtexdem Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 02:40 PM
Response to Original message
22. Killing us softly with his talk.
And making my chances of voting for him more and more remote.
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Kolesar Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 03:04 PM
Response to Original message
23. COLA or cap, what is it that you are commenting on?
It is impossible to tell from your post.
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bvar22 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Aug-19-11 03:40 PM
Response to Original message
24. Another Stealth Attack on Social Security,
just like the "Temporary Payroll Tax Holiday"

Payroll Tax Holiday Directly Connects Social Security to The Deficit




The Writing is On the Wall for those who dare to read it.
The line is drawn.
Will YOU fight?
or go passively along and get in the Cattle Car?




Cherish your memories, SUCKERS!
because we're TAKING everything else!
Hahahahahahaha!



Solidarity!



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