December, 13 2012, 02:37pm EDT
Chained CPI Cuts Social Security Benefits while Raising Taxes on Lower- and Middle-Income Workers
A leading deficit reduction proposal is to "tweak" the official inflation measure used to annually adjust Social Security benefits, other government programs, and income tax brackets.
WASHINGTON
A leading deficit reduction proposal is to "tweak" the official inflation measure used to annually adjust Social Security benefits, other government programs, and income tax brackets.
Proponents of this proposal argue that a relatively new inflation measure, the Chained CPI, is more accurate than the current index and the decrease in benefits to the programs affected would be balanced by increased tax revenue from the wealthy. A new issue brief from the Center for Economic and Policy Research (CEPR) examines these issues and finds the opposite to be true.
The issue brief, "The Chained CPI: A Painful Cut in Social Security Benefits and a Stealth Tax Hike," points out that switching to the Chained CPI would result in cuts to already modest Social Security benefits. As well, the Chained CPI is likely not an accurate measure of the inflation rate seen by seniors. Finally, the brief shows that the Chained CPI would result in a proportionately larger increase in income taxes for lower- and middle-income Americans than for those in the top tax brackets.
As a measure of inflation, the Chained CPI has shown a rate of inflation 0.3 percentage points lower than the current index used to calculate Social Security annual cost-of-living adjustments. This slower rate would add up over time: 10 years after switching to the Chained CPI, Social Security benefits would be 3 percent less; after 20 years there would be a 6 percent cut; and after 30 years the cut would be 9 percent. The change to the Chained CPI would also cut benefits for veterans, low-income children, people with disabilities and many others who rely on government programs.
Since seniors' expenses differ from those of the general population, the Chained CPI is not a more accurate measure of inflation for retirees, as is often claimed by proponents of switching indexes. An experimental elderly index constructed by the Bureau of Labor Statistics tracks seniors' actual costs and shows a more rapid rate of inflation than the currently-used index. A main factor is that seniors spend significantly more on housing and medical care, whose costs are rising faster than those of other goods and services.
"The Bureau of Labor Statistics' experimental elderly index more accurately tracks the consumption patterns of the elderly, and it shows that inflation for seniors is actually higher, not lower, than the current measure," said Nicole Woo, Director of Domestic Policy at CEPR. "If accuracy is indeed a concern, the BLS could construct a full elderly index for annual Social Security cost-of-living adjustments."
The argument that a reduction in benefits would be offset by an increase in tax revenue from high-income earners also falls short. Switching to the Chained CPI to adjust annual income tax brackets would lead to incomes jumping to higher brackets faster, or in other words, tax increases. Congress' non-partisan Joint Committee on Taxation showed that if income taxes were indexed to the Chained CPI starting in January of 2013, by 2021, 69 percent of the gains in revenue would come from taxpayers with incomes below $100,000. Those taxpayers with incomes between $10,000 and $20,000 would see an increased tax burden of 14.5 percent while those with incomes over $1,000,000 would only see their taxes go up by 0.1 percent.
The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.
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'Everyone in the World Needs to See This': Footage Shows IDF Drone Killing Gazans
"There is no way they could have been considered combatants," said one writer and analyst. "This is unreal."
Mar 21, 2024
Adding to the mountain of evidence that Israel is engaged in a genocidal war on the Gaza Strip, Al Jazeera on Thursday aired footage of what the news outlet reported was an Israeli drone targeting four Palestinians in Khan Younis last month.
Those killed by the unmanned aerial vehicle in the rubble of the southern Gaza city appear to be unarmed teenagers or young men. According to a translation of the coverage, they were not identified in the reporting.
While Al Jazeera deemed footage "too graphic" to be included on its daily live blog covering the war, a clip of it quickly spread on social media, where critics of the Israel Defense Forces operation expressed outrage.
"OUTRAGEOUS even after months of outrages," declared Palestinian American political analyst Yousef Munayyer. "This video shows an Israeli military drone literally stalking four unarmed civilians posing no threat and eliminating them one after the other!!!"
Tariq Kenney-Shawa, Al-Shabaka's U.S. policy fellow, said: "This is among the worst footage I've seen. Not only were these boys clearly unarmed and present no threat whatsoever, but they were struck multiple times even after stumbling/crawling away. There is no way they could have been considered combatants. This is unreal."
Note: The following video contains graphic images.
Assal Rad, an author with a Ph.D. in Middle East history, said: "Have we ever seen so many war crimes take place right before our eyes? Any country still providing weapons and aid to Israel is complicit in these crimes."
Exiled American whistleblower Edward Snowden asserted that "everyone in the world needs to see this. Note that this footage permits no room for 'it was a mistake,' showing repeated, specifically targeted strikes on the unarmed and even wounded."
"The sort of behavior the ICJ explicitly forbid in the genocide ruling against Israel," added Snowden, referencing the International Court of Justice's preliminary order in January for an ongoing case led by South Africa.
Since the ruling, rights groups around the world have accused Israel of ignoring the ICJ order by continuing to bomb and starve people across Gaza. The mounting casualties—at least 31,988 killed and 74,188 wounded—have elevated demands for the U.S. government to end arms transfers to Israel.
The United States gives its Middle East ally $3.8 billion in annual military aid and since the Israeli assault was launched in retaliation for a Hamas-led attack on October 7, the Biden administration has sought $14.3 billion more while bypassing Congress to send more weapons. U.S. President Joe Biden, Secretary of State Antony Blinken, and Secretary of Defense Lloyd Austin face a genocide complicity case in federal court.
While the Biden administration has repeatedly vetoed and opposed cease-fire resolutions at the United Nations Security Council and General Assembly, Nate Evans, a spokesperson for Linda Thomas-Greenfield, the U.S. ambassador to the U.N., confirmed Thursday that the United States plans to unveil a new one on Friday.
The resolution will "unequivocally support ongoing diplomatic efforts aimed at securing an immediate cease-fire in Gaza as part of a hostage deal, which would get hostages released and help enable a surge in humanitarian aid," Evans told Al Jazeera. "This resolution is an opportunity for the council to speak with one voice to support the diplomacy happening on the ground and pressure Hamas to accept the deal on the table."
Blinken said Thursday that "there's a clear consensus around a number of shared priorities. First, the need for an immediate, sustained cease-fire, with the release of hostages. That would create space to surge more humanitarian assistance, to relieve the suffering of many people, and to build something more enduring."
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"Our leaders must act to kick insurance companies to the curb and enact Medicare for All now," said one advocate.
Mar 21, 2024
Single-payer advocates on Thursday pointed to new federal life expectancy data—which shows Americans live shorter lives than people in any other major most-developed nation—as the latest proof of the need to enact a Medicare for All-type universal healthcare program.
According to the Centers for Disease Control and Prevention (CDC), U.S. life expectancy was 77.5 years in 2022, an increase of 1.1 years from the previous year. The leading U.S. causes of death in 2022 were heart disease, cancer, unintentional injuries, and Covid-19.
The 2022 figures reversed two consecutive years of declining U.S. life expectancy, largely due to Covid-19, which has killed nearly 1.2 million people in the country. However, U.S. life expectancy in 2022 was still below its pre-pandemic high of 78.8 years in 2019.
"Despite spending the most per capita on healthcare, we have a consistently lower life expectancy than our peers in comparably wealthy countries."
"While it is good news that U.S. life expectancy is finally rising again, it is important to remember that despite spending the most per capita on healthcare, we have a consistently lower life expectancy than our peers in comparably wealthy countries with universal healthcare," said Eagan Kemp, the healthcare policy advocate at Public Citizen.
The United States is the only developed nation in the world without guaranteed universal healthcare.
"We must keep making the point that profit-driven healthcare is not only worse for patients—it's a national embarrassment," Kemp added. "Our leaders must act to kick insurance companies to the curb and enact Medicare for All now."
One 2022 study found that more than 338,000 U.S. Covid-19 deaths could have been prevented if the country had a single-payer universal healthcare system like Medicare for All.
While opponents—including U.S. lawmakers who take substantial donations from the for-profit healthcare and insurance industry—often argue that Medicare for All would be too expensive, a 2020 Congressional Budget Office analysis found that such a program would save between $300 billion and $650 billion annually.
The same study found that approximately 68,000 people die each year in the United States because they lack access to healthcare.
Meanwhile, millions of American families face bankruptcy and financial ruin due to healthcare expenses, as the CEOs of 300 major U.S. healthcare companies made $4.5 billion in collective compensation in 2022.
The United States has the lowest life expectancy of any large rich country while spending far more on healthcare than comparable nations. Figures vary by source and year, but according to the 2023 edition of the CIA Factbook, the U.S. ranked 48th in worldwide life expectancy, while 2021 World Bank figures place the U.S. in 59th place globally, between Algeria and Panama.
U.S. Sen. Bernie Sanders (I-Vt.) and Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.) last year led more than 120 lawmakers in reintroducing bicameral Medicare for All legislation.
"There is a solution to this health crisis—a popular one that guarantees healthcare to every person as a human right and finally puts people over profits and care over corporations," Jayapal said at the time. "That solution is Medicare for All—everyone in, nobody out."
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AOC, Sanders Renew Fight for Green New Deal for Public Housing
"Every American deserves to live in a safe, vibrant, and environmentally conscious community—including public housing residents," said Rep. Alexandria Ocasio-Cortez.
Mar 21, 2024
Backed by dozens of progressive groups and congressional Democrats, U.S. Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders on Thursday reintroduced legislation designed to tackle both the affordable housing crisis and the climate emergency.
The New York Democrat and Vermont Independent are leading the renewed fight for the Green New Deal for Public Housing Act, which would invest up to $234 billion over a decade into "weatherizing, electrifying, and modernizing our public housing so that it may serve as a model of efficiency, sustainability, and resiliency for the rest of the nation."
Ocasio-Cortez noted that "years of grassroots organizing on behalf of vulnerable Americans led to the creation of the first federal public housing units—but, for decades, the federal government has allowed our limited public housing stock to fall into disrepair."
"Residents are dealing with mold growth, lead-based paint hazards, lack of central cooling and heating, failing water infrastructure, and numerous other safety concerns," the congresswoman said. "It is beyond time for the federal government to take responsibility and pass legislation that offers comprehensive, public solutions."
"The Green New Deal for Public Housing Act will allow for an increase in public housing units, create an estimated 280,000 jobs, and invest up to $23 billion a year over 10 years for highly energy-efficient developments," she explained. "This will produce on-site renewable energy, expand workforce capacity, and focus on community development. Every American deserves to live in a safe, vibrant, and environmentally conscious community—including public housing residents. I am confident this legislation is how we make that a reality."
The jobs estimate comes from an analysis released Thursday by the Climate and Community Project and the Socio-Spatial Climate Collaborative—which also found that the proposed upgrades to U.S. public housing stock would cut carbon emissions by 5.7 million metric tons, the equivalent of taking 1.26 million cars off the road each year.
"Public housing is an essential source of stable and affordable housing for 1.7 million Americans, and our research shows we are rapidly losing units to conversions, demolitions, and deterioration," said Kira McDonald of Climate and Community Project. "This legislation would constitute decisive action to stave this loss and transform living conditions for public housing residents. In so doing, it would improve residents' health, safety, help eliminate carbon emissions, and help build the new green industries we need to decarbonize."
As Ocasio-Cortez's office summarized, the bill would:
- Expand federal programs to provide residents with meaningful work investing in their communities, to own and operate resident businesses, to move toward financial independence, and to participate in the management of public housing;
- Expand resident councils so that public housing residents have a seat at the table for important decisions regarding their homes; and
- Replenish the public housing capital backlog and repeal the Faircloth Amendment, which limits the construction of new public housing developments.
The legislation would also create two grant programs for deep energy retrofits; community workforce development; upgrades to energy efficiency, building electrification, and water quality; community renewable energy generation; recycling; resiliency and sustainability; and climate adaptation and emergency disaster response.
As world leaders dragged their feet on climate action last year, declining to demand a global phaseout of planet-heating fossil fuels at the most recent United Nations climate conference, all life on Earth was forced to contend with record high temperatures. The United States alone saw 28 disasters that each caused at least $1 billion in damage, collectively costing at least $92.9 billion.
"In these difficult times, we must move forward boldly to address the systemic and existential crises facing us today and that includes urgently combating climate change and making sure every American has a safe and decent place to call home," Sanders said Thursday. "It is unacceptable that, on a single given night in America, over 650,000 people are homeless."
That record number comes from an annual report
released by the U.S. Department of Housing and Urban Development in December. As Common Dreamsreported at the time, academics and advocates have long stressed that the formal figure only represents a faction of the people dealing with housing insecurity nationwide.
"It is unacceptable that, in the richest country in the history of the world, people are choosing between paying rent and putting food on the table," argued Sanders. "It is unacceptable that our nation's public housing is in a state of chronic disrepair and energy inefficiency after generations of government neglect. It is unacceptable that we have not done more to transform our energy systems, our communities, and our infrastructure away from fossil fuels and toward renewable energy. This legislation is a major step in the right direction, and I am proud to partner with Congresswoman Ocasio-Cortez in introducing it today."
The rent is too damn high y'all.
It's time we pass transformative legislation like @RepAOC and @SenSanders' Green New Deal for Public Housing. Everyone deserves access to safe, clean, affordable housing without spending over 20% of their income on rent.
Let's get it done!! ✊🏿 pic.twitter.com/U9rO1yQY3G
— Congressman Jamaal Bowman (@RepBowman) March 21, 2024
Joining the pair in backing the bill are 55 other House Democrats and Sens. Richard Blumenthal (D-Conn.), Cory Booker (D-N.J.), Ed Markey (D-Mass.), Jeff Merkley (D-Ore.), Alex Padilla (D-Calif.), Elizabeth Warren (D-Mass.), and Peter Welch (D-Vt.).
Markey, who has
spearheaded the broader battle for a Green New Deal with Ocasio-Cortez, said that "in the five years since its introduction, Green New Deal advocacy has catapulted environmental justice to the top of the national agenda, helped deliver historic victories, and charted a course for a better future."
The Green New Deal for Public Housing Act is also endorsed by over 70 advocacy groups and labor unions, including the American Federation of State County and Municipal Employees, American Federation of Teachers, Center for Popular Democracy (CPD) Action, Movement for Black Lives, MoveOn, National Low Income Housing Coalition, Public Citizen, and Sunrise Movement.
"Our opponents use tactics like the Faircloth Amendment to defund our public housing. And then they point to our public housing and say, 'Look, it's not working.' That's what they do—but we're not confused," declared DaMareo Cooper, co-executive director of CPD Action.
"We're in another awakening right now. People have been through too much. They are tired. We are tired. Enough is enough," Cooper added. "We all know that it's impossible for you to think that a government in this day and age cannot create housing for everyone."
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