President Obama’s proposal to change how Social Security Cost of Living Allowance (COLA) increases are measured is a drive-by shooting of seniors, disabled veterans and everyone else living on a fixed income from Uncle Sam.
He wants to replace the Consumer Price Index with a “chained CPI.” It should be called a “chainsaw” CPI becase it will shred the income of those who can least afford it. The chained CPI is based on the idea of alternative purchases. For example, if meat prices soar, you buy chicken instead. But what if your rent rises, do you move? If your medical costs increase, do you find a new doctor? To lower the deficit, eliminate tax loopholes for 1 percenters, like the carried interest rate enabling private equity pirates and hedge fund hustlers to pay half of what they really owe. Why should we pay for their Park Avenue apartments, Hamptons homes and expensive art collections?