The Continuing Social Security COLA Debate: Chained CPI, CPI-W or CPI-E?
As legislators grapple with the long-term funding issues associated with Social Security, one of the areas consistently coming under scrutiny is the manner in which Cost-of-Living Adjustments (COLA) are calculated. Sean Williams, in a post on foxbusiness.com, takes a look at this continuing debate, and shares the results of a “Voice of the People” survey revealing some surprising opinions from the public. Oddly enough, Williams notes, the survey seems to indicate a slight preference for a Chained CPI calculation over the CPI-E (Consumer Price Index for the Elderly). But the bottom line, predicts Williams, is that forward motion on the COLA issue is unlikely in the near term.
Modification of the COLA calculation process is part of a comprehensive plan developed by AMAC to make Social Security solvent for at least the next 75 years. Essentially, the AMAC plan calls for a guaranteed COLA based on income tiers, and is part of the overall plan to ensure Social Security’s long-term solvency without increasing taxes. AMAC has been promoting and will continue to promote this plan in the halls of Congress and to the new administration. Click here to find out more about AMAC’s Social Security Guarantee.