Proposed Deficit Cuts Target Seniors, Veterans, People with Disabilities, Those on Social Security
Posted April 12, 2013 11:15 am
TALLAHASSEE, FL - Reducing the deficit is a top priority
in Washington and one option being considered would cut
benefits for veterans, people with disabilities, and
those receiving Social Security.
It's part of a little known and little understood change
to the way cost-of-living increases are calculated. The
proposed method is called
Chained CPI (Consumer Price Index) and is included
in President Barack Obama's proposed budget plan. It
assumes that people can choose lower cost items if
prices rise.
Veteran Bill Burchette says the economic principle
doesn't add up in real life.
"If the cost of steak goes up, then you can buy chicken
or turkey," he says. "We're already on chicken and
turkey, and some of us are not even eating that."
AARP estimates that switching to chained CPI would cost
seniors and veterans a combined $146 billion over the
next 10 years.
Right now 62-year-olds receiving $900 a month in
benefits would lose a total of $32,000 by the time they
are 90.
Florida's economy stands to lose too, according to AARP
Florida. If chained CPI was put into effect, the state
would see a $9 billion reduction in benefits over the
next 10 years.
It's money that could otherwise be spent in the state's
economy, explains AARP state director Jeff Johnson.
"That's a big picture concern," he says. "But more than
anything, we really are concerned with the little
pictures. Every individual, particularly those who live
longer, women, they won't have enough in their Social
Security benefit to keep them out of poverty."
Burchette served 27 years in the Air Force Reserve and
says he's disappointed in this policy proposal.
"That's a slam against the people that served this
country and served it well," he says. "Served it at
times when they didn't really believe in what some of
our politicians were doing - but our nation called and
said this is the right thing to do, and that's what we
did."
According to an AARP survey, 87 percent of Floridians
age 50 and over oppose changing the way the Social
Security cost-of-living adjustment is calculated.
Supporters of chained CPI say it will help make the system solvent and reduce the federal deficit.
Links and graphic added by the Observer