Social Security

What's In A Name? Dems Support Social Security Benefit Cut -- By Calling It Something Else

Brian Beutler | July 8, 2011, 5:54AM

House Minority Whip Steny Hoyer, House Minority Leader Nancy Pelosi and President Barack Obama

Social Security benefit cuts may be a bridge too far for House Minority Leader Nancy Pelosi (D-CA). But what if Republicans and Democrats alike just agreed to refer to a benefit cut by another name.

That's how key negotiators have decided to treat one policy proposal, popular in Washington, that would simultaneously raise tax revenues and reduce Social Security benefits. As explained at length here, the idea is to peg federal Cost of Living Adjustments to a new, stingier measure of inflation.

Experts say the new index (the so-called Chained Consumer Price Index) is a more realistic metric for measuring inflation's impact on peoples' behavior. But the fact remains that if the change goes through as part of a grand bargain to lower deficits and raise the debt limit, retirees will receive less money each month than they're currently promised.

And if you think Democrats are playing dumb because they want a deal, think again. They're some of the biggest supporters of this plan.

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