Social Security and other government benefits, along with much of the tax code, are automatically adjusted to reflect inflation. Yet economists say that exaggerates how quickly prices increase, meaning the government pays too much for annual cost-of-living gains while collecting too little tax revenue.
Projected Spending
Over 10 years, using the chained CPI pushed by Boehner would reduce projected Social Security spending by 1.2 percent, according to the CBO.
“Every bipartisan group that has reached a conclusion has said those are the elements you have to have,” said Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat, referring to the proposed changes to entitlement programs.
“It’s just as clear as it can be,” he said on Dec. 4 when asked about the need for his party to compromise. “Both sides have to move off their fixed positions in order to reach an agreement.”