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…
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 the past for indexing Social Security benefits after retirement, where t…
