Working America - As Republicans in Congress take a hard line in the sand against higher tax rates for millionaires and billionaires, they are demanding a Social Security benefit cut through a lower Cost of Living Adjustments. The lower COLA would result from the adoption of a new formula for calculating COLAs called “Chained CPI.”
The Center for Economic and Policy Research points out this is not only a benefit cut on already modest Social Security benefits, but also a stealth tax increase on working people, especially middle- and lower-income families.
In fact, in just 11 years, a “chained” CPI would wipe out the 2012 COLA.
Read more from CEPR on the “chained” CPI.