The White House is set to release their budget for the federal government’s fiscal year 2013 on April 10, 2013. Some of President Obama’s proposals have already been released to the public. One the proposals includes making changes to both the Social Security and Medicare entitlement programs.
In an effort to get the Republicans in Congress to agree to increased tax revenue, President Obama has proposed that the cost of living adjustments (COLA) to Social Security benefits be calculated differently using what’s called “chained CPI.” CPI stands for consumer price index. If enacted this would potentially decrease many Social Security beneficiaries’ monthly benefits and keep their future benefits lower due the chained CPI calculation which calculates inflation as a lower rate than the previous CPI that the COLA was based on. This is expected to increase the Social Security trust.
Chained CPI is controversial and opposed by many Democrats in President Obama’s own party. While this had previously been suggested by Republicans, reactions from Republicans in Congress have not been positive.
For more information on the President’s proposed budget read the check out the Washington Post’s article “Obama budget would cut entitlements in exchange for tax increases.”
If this issue is of interest to you, please write to your local Congressperson or Senator.
