Tag: chained cpi
The current index is a good compromise. It’s “Social Security COLA-speculation” season, and with it comes the annual controversy about whether the government is using the right index to adjust benefits. I would argue that the current index is good enough; it can easily be viewed as a compromise between the two major alternatives –…
But it shouldn’t be used as a precedent for Social Security. Both the House and Senate tax cut proposals change the measure of inflation used to adjust the income thresholds in the tax schedule. This shift to a “chained” consumer price index (CPI), which makes sense on the tax side, has also been proposed in…
