Tag: elderly index
Shifting to CPI-E for retirees would involve a lot of pain for not much gain. This fall, Social Security is likely to announce a 6-percent cost-of-living adjustment (COLA) for 2022. Such a large COLA – the biggest in 40 years (see Figure 1) – is likely to reignite the debate over whether the government is…
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…
