Newsflash:
Rep. Raul Grijalva Rep. Raul Grijalva Liberal Democrats: Chained CPI Could Be Deal Breaker
Monday, 24 December 2012 16:18

Liberal Democrats: Chained CPI Could Be Deal Breaker

Written by  Michael R. Crittenden | Wall Street Journal

Liberal House Democrats on Thursday warned Republicans and President Barack Obama that including a change to how the government calculates cost-of-living adjustments could serve as a poison pill for any fiscal deal.

Liberal House Democrats on Thursday warned Republicans and President Barack Obama that including a change to how the government calculates cost-of-living adjustments could serve as a poison pill for any fiscal deal.

Members of the Congressional Progressive Caucus said Mr. Obama needs to keep his promise that Social Security cuts will not be on the table as part of negotiations to avert spending cuts and tax increases set to take effect at the beginning of next year. They are concerned about a proposal to replace the existing way of calculating inflation with “chained CPI” when calculating benefits for federal programs such as Social Security.

Rep. Raul Grijalva (D., Ariz.) said Republicans want to include the measure in any deficit deal as an ideological “trophy” because it would hurt Social Security.

“It had to do with beginning to dismantle a program they’ve considered a boogeyman for many years,” Mr. Grijalva said.

[Published at the Wall Street Journal]

Read 2714 times Last modified on Monday, 24 December 2012 16:30

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Lori Wallach on the TPP from PDA Progressive Roundtable

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