Mon, Nov 7th - 1:57PM

New formula would reduce Social Security increases

If adopted across all government services (like the IRS) it would have the effect of increasing taxes on the poor and middle class more than the wealthy because the wealthy are already in high brackets.  The poor and middle class will creep up into them until we have to revise the tax code again.

The concept behind is the chained CPI is strained at best.  The core assumption is that if the price of one commodity goes up consumers will either use less or switch to something less expensive.  They might, if that isn't a basic necessity and already the cheapest option!

Now, maybe it's valid and maybe it's not, BUT if that's the only thing the GOP will agree to on revenue then it's not fair.  Once again we'd be asking the poor, middle class and elderly to make a sacrifice when the wealthy are not.

Increase taxes on the wealthy and cut coprorate subsidies and loopholes and then maybe we can consider a chained CPI as a way to control costs.  But not in isolation.