Chained CPI and its impact to Social Security

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Tuesday December 18, 2012 · 11:04 AM PST

2012/12/18 · 11:04

As you may be aware the new budget deal may contain a shift in the use of which Consumer Price Index (CPI) is used for Social Security cost of living adjustments (COLAs).

OK, what the hell does that mean?

The CPI currently used by Social Security for COLA purposes is the CPI-W (Wage earners and clerical workers).

The CPI-W is based on the changes in price of a fixed quantity of goods but is limited to the group of households with at least 50% of the household income coming from clerical or wage paying jobs. This covers about 30% of the population.

CPI-U on the other hand uses the same data but only considers the prices paid for goods and services by those that live in urban areas. This covers about 80% of the population.

Unchained CPI-U (still All Urban Consumers) uses the same data but looks at the shift in where people are spending their money. Population coverage is the same as CPI-U.

Example of difference of unchained:

People stop buying product A because it is too expensive and start buying product B. In CPI-U the same quantities are used in both years to determine the change in prices to figure the index change. In C-CPI-U, the quantities change based on the new spending habits which affects the pricing used to calculate the index change.

To the best of my knowledge there is no C-CPI-W.

But what is the dollar impact to Social Security benefits? See below...

ThankGodforAtheists

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Saturday December 15, 2012 · 10:48 AM PST

2012/12/15 · 10:48

This may have already come up and if so, my apologies.

First, let me say I am not a Federal Income Tax expert. That being said, as I planned for year end and took a closer look at my investments I ran across something that may be of value to someone here to save money, so I thought I should pass this on. I will attach a link to an article that also helps explain it.

Many have investments in mutual funds, etc. they may have had for many years. The nest egg may have taken a hit during the downturn but it hopefully came back. It may now be sitting in the black and the market seems to be on a slow uptick so why fix what isn't broken, right?

Not necessarily. Here's why. The current long term (investments held longer than one year) capital gain tax rates on investments became effective in 2008 and they will end at the end of 2012. We hear in the MSM how the capital gains rate is going to go from 15% to 20%. There is more to the story that isn't being reported though. More below...

ThankGodforAtheists

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Monday January 31, 2011 · 10:21 AM PST

2011/01/31 · 10:21

A recent troubling incident prompts me to write this. Maybe a little understanding will prevent what happened to me from happening to another person with epilepsy. There are many forms of epilepsy, I have gran mal seizures, which are full body seizures while unconscious. I am fortunate as these have been under control for the past 23 years. So, no seizures, no problems, right? Even though one may not have seizures, epilepsy makes itself known daily.

I hope you continue reading, if it saves even one friendship it was worth the time.

ThankGodforAtheists

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Thursday November 19, 2009 · 6:34 AM PST

2009/11/19 · 06:34

The anniversary of the November 22, 1963 assassination of President Kennedy is soon upon us. Anyone who was alive and old enough at the time remembers that day well. It was very much a time of shock, disbelief and sorrow. In a brief few seconds the United States was placed on a new path in history.

I began thinking about it and wondered how the “news” agencies and media of today would have reacted to the events as they unfolded. The following time lines are a mix of history and fiction. They depict what the assassination of President Kennedy may have been like had it happened today, in the current world of instant communications. It is meant as my commentary on the state of today's media. Any quotes may be verbatum, paraphrased, changed or just complete fiction.

I would say I hope you enjoy this but I am not sure it is something that can be enjoyed.

ThankGodforAtheists

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Wednesday July 15, 2009 · 8:58 AM PDT

2009/07/15 · 08:58

Sorry, this will not be long but here a couple of links to the new blasphemy law in Ireland. I searched here but did not find this issue. Let me know if this is old news. There are more links out there. Have not seen it on BBC.

Ireland has adopted a new law which has been in debate for several years. The law makes blasphemy illegal. The maximum fine, as amended, is 25,000 Euros or at the current exchange rate, $34,977 USD. The law also gives the police authority to confiscate blasphemous materials.

Link to actual wording of original bill:

http://www.oireachtas.ie/...

Chained CPI and its impact to Social Security

0% capital gains tax rate for some people this year.

Epilepsy – Beyond the seizures

What if JFK were assassinated in 2009? - a media commentary

Ireland's new blasphemy law. Wow.

GMA "Kennedys aren't bulletproof"