The ins and outs of ‘chained CPI’ explained " Here’s the bottom line: Using chained CPI instead of CPI-W means the rate at which those benefits tick up would be slower, because the former reflects substitutions consumers would make in response to rising prices of certain items.Therein lies the “chained” part of the name. The metric utilizes a basket of goods and services that are measured changes from month to month; much like a daisy chain. If the cost of a certain form of transportation goes up, for example, people might switch to another kind. This kind of “substitution” is part of what is factored into chained CPI."
So if the price of riding a bus goes up, they now figure you would ride a bike instead, as I understand it.
Some say this is a miniscule concession in order to get Republicans to agree on tax hikes, or Obama will attack them.
Politico gives their explanation ...."Moving to a chained CPI would make Social Security benefits increase by less each year. Since 1999, the chained CPI has increased by about .3 percent each year, less than the current CPI. With the same trend, people would overall receive a smaller increase in their benefits each year.
"Switching to the chained CPI would also serve as a tax increase, making more people qualify for certain tax levels or exempt for certain tax reductions."
Krauthammer’s Take: If We’re Stuck at Chained CPI, ‘We’re Going to End Up Like Cyprus’ So this is the most that Obama will do?
"Charles Krauthammer said on [Wednesday's] edition of Special Report that President Obama’s proposal to adopt chained CPI is a minimal concession, one recommended by virtually every expert and commission that has studied the matter."
Mr. Krauthammer does not even try to conceal his contempt for Obama in most of his commentary.
So if the price of riding a bus goes up, they now figure you would ride a bike instead, as I understand it.
Some say this is a miniscule concession in order to get Republicans to agree on tax hikes, or Obama will attack them.
"Switching to the chained CPI would also serve as a tax increase, making more people qualify for certain tax levels or exempt for certain tax reductions."
Krauthammer’s Take: If We’re Stuck at Chained CPI, ‘We’re Going to End Up Like Cyprus’ So this is the most that Obama will do?
"Charles Krauthammer said on [Wednesday's] edition of Special Report that President Obama’s proposal to adopt chained CPI is a minimal concession, one recommended by virtually every expert and commission that has studied the matter."
Mr. Krauthammer does not even try to conceal his contempt for Obama in most of his commentary.
No comments:
Post a Comment