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Response to democrattotheend (Reply #17)

Tue Dec 18, 2012, 10:07 PM

18. In my opinion, they leaked it to get us all in an uproar about Social Security....

But Jay Carney has already hinted that SS and some other programs may be exempt from chained CPI. When We The People finally get to see the goddamn thing and IF SS is exempt, everyone will be like, "See, Obama is great!" and "You all were wrong! He promised not to touch SS and he didn't! Suck on that lefty swine!"

BUT BUT BUT, even if SS and a few other social programs are off the table, chained CPI is horrible for poor and low income people. Chained CPI results in a tax increase that disproportionately affects the poor through the middle class.

It's a right wing wet dream.

Even if Social Security is exempt, it is going to hurt the majority of us.

The Chained CPI would also effectively raise taxes on virtually all working Americans, especially middle and lower income families. By applying it to all government programs, including the annual adjustment in income tax brackets, the Chained CPI would cause those thresholds to rise more slowly than they do now. That would lead to incomes jumping up to higher tax brackets faster, or in other words, income tax increases.
According to Congress’ Joint Committee on Taxation, if individual income taxes were indexed to the Chained CPI starting in January 2013, by 2021, 69 percent of the gains in revenue would come from taxpayers with incomes below $100,000, while those in the highest income brackets would barely be affected. For example, workers with incomes between $10,000 and $20,000 would experience an increased tax burden of 14.5 percent, while those with incomes over $1,000,000 would just see an increase of 0.1 percent. 9 This contradicts the idea that the negative effects from benefit cuts due to a switch to the Chained CPI would be offset by increased revenue from the wealthy.


The above is an excerpt from a report from the Center For Economic And Policy Research. You can download the report from this page:
http://www.cepr.net/index.php/publications/reports/the-chained-cpi-a-painful-cut-in-social-security-benefits-and-a-stealth-tax-hike

And a link to the press release
http://www.cepr.net/index.php/press-releases/press-releases/chained-cpi-cuts-social-security-benefits-while-raising-taxes-on-the-middle-class

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Arrow 18 replies Author Time Post
democrattotheend Dec 2012 OP
msongs Dec 2012 #1
Liberalynn Dec 2012 #10
leftstreet Dec 2012 #14
PoliticAverse Dec 2012 #2
alcibiades_mystery Dec 2012 #3
GoCubsGo Dec 2012 #4
Luminous Animal Dec 2012 #5
democrattotheend Dec 2012 #17
LineLineLineLineNew Reply In my opinion, they leaked it to get us all in an uproar about Social Security....
Luminous Animal Dec 2012 #18
democrattotheend Dec 2012 #6
WillyT Dec 2012 #9
Liberalynn Dec 2012 #12
reformist2 Dec 2012 #7
democrattotheend Dec 2012 #13
Liberalynn Dec 2012 #15
Bonobo Dec 2012 #8
democrattotheend Dec 2012 #11
Luminous Animal Dec 2012 #16
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