Not only will Chained CPI cut benefits to Seniors on Social Security, cut Veterans benefits, force working families into the next highest income tax bracket, but income eligibility for over 30 government programs will be effected.
Programs such as:
Community Services Block Grant
Low-Income Home Energy Assistance Program (LIHEAP)
PARTS of Medicaid (31 percent of eligibles in Fiscal Year 2004)
Hill-Burton Uncompensated Services Program
AIDS Drug Assistance Program
Children’s Health Insurance Program
Medicare – Prescription Drug Coverage (subsidized portion only)
Community Health Centers
Migrant Health Centers
Family Planning Services
Health Professions Student Loans — Loans for Disadvantaged Students
Health Careers Opportunity Program
Scholarships for Health Professions Students from Disadvantaged Backgrounds
Job Opportunities for Low-Income Individuals
Assets for Independence Demonstration Program
Supplemental Nutrition Assistance Program (SNAP) (formerly Food Stamp Program)
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
National School Lunch Program (for free and reduced-price meals only)
School Breakfast Program (for free and reduced-price meals only)
Child and Adult Care Food Program (for free and reduced-price meals only)
Expanded Food and Nutrition Education Program
And over time many of those programs will pay out less. Yeah I know this sounds crazy, but read on.....
According the The Arc of New York City, they have a great fact sheet on the over reaching effects of Chained CPI.
If Chained CPI is applied to only Social Security benefits, seniors would find themselves falling below the poverty guidelines over time. This why proponents of Chained CPI claim it will keep Seniors above the poverty guidlines, because Chained CPI will be applied to those Federal Poverty guidelines. So its a cut to SS benefits and the poverty guidelines.
In a recent news release,the AARP stated that the Chained CPI is
used to make cost-of-living adjustments in Social Security, veterans benefits, food stamps and other federal programs
As CNBC reported over a year ago
If adopted across the government, the change would have far-reaching effects because so many programs are adjusted each year based on year-to-year changes in consumer prices.
Taxes would slowly increase because annual adjustments to income tax brackets would be smaller, pushing more people into higher tax brackets.
I pointed this out
during the Social Security Defenders blogathon last week:
But what may not be well known is that Chained CPI would be used not just for calculating Social Security and Veterans Benefits..... If the Government adopts Chained CPI for adjusting Income Tax Brackets, & wages grow more than the Chained CPI, your income rises faster than the Income tax brackets would. Over time many families would be bumped into the next income tax bracket. Currently the Income Tax Brackets are adjusted to CPI-U.
Over time, fewer people would be eligible for anti-poverty programs like Medicaid, Head Start, food stamps and school lunches because annual adjustments to the poverty level would be smaller, leaving fewer people under the official poverty line.
The effects of enacting the Chained CPI will have far reaching consequences for families near or below the poverty line, Veterans, women on Social Security, working class families, even some middle class families are going to be hurt by chained CPI.
Have you wondered why some have said that Chained CPI will aid in deficit reduction? And how could that have anything to do with Social Security? That's because Chained CPI effects dozens of components with nuanced far ranging impacts. Well that income tax increase isn't part of Social Security but it does raise revenue, 65 billion dollars over 10 years on the backs of the very people who can least afford another financial hit.
If enacted for 2014, the change would reduce government borrowing by $223 billion over the next decade -- $158 billion in spending cuts and $65 billion in tax increases, according to the nonpartisan Congressional Budget Office. The biggest savings -- $102 billion -- would come from Social Security.
Please sign the White House petition, tell President Obama Chained CPI will not be tolerated. Please share the petition and the grahpic, which is perfectly square (suitable for FB).
If you don't have, or don't want to have an account required for signing the White House petition, here is Senator Sherrod Browns petition..
DailyKos Blogathon -- Week of April 8th
(All times are Eastern, diaries published by the Pushing back at the Grand Bargain group)
Monday, April 8
10:00 a.m. Roger Fox
12:00 noon eXtina
2:00 p.m. Guest crosspost by Yves Smith
4:00 p.m. Horace Boothroyd III
6:00 p.m. slinkerwink
8:00 p.m. joedemocrat
Tuesday, April 9
10:00 a.m. Guest crosspost by Bill Black
12:00 noon Livestream Event diary/Team
2:00 p.m. joe shikspack
4:00 p.m. Roger Fox
6:00 p.m. Priceman
8:00 p.m. TomP
Wednesday, April 10
11:00 a.m. Liveblog budget announcement press conference
12:00 noon Words in Action
1:00 p.m. bobswern
2:00 p.m. One Pissed Off Liberal (OPOL)
4:00 p.m. Puddytat
6:00 p.m. Tool
8:00 p.m. SouthernLiberalinMD
Thursday, April 11
10:00 a.m. Letsgetitdone
12:00 noon CitizenofEarth
1:00 p.m. Words in Action
2:00 p.m. Liveblog event diary
3:00 p.m. LeftHandedMan
4:00 p.m. Unitary Moonbat
6:00 p.m. cosmic debris
8:00 p.m. angelajean
Friday April 12
9:00 a.m. 2LaneIA
10:00 a.m. joanneleon
11:00 a.m. Roger Fox
12:00 noon jamess
1:00 p.m. joejoejoe
2:00 p.m. ek hornbeck
3:00 p.m. Seneca Doane
4:00 p.m. Vetwife
6:00 p.m. Jim P
7:00 p.m. teacherken
7:30 p.m. Horace Boothroyd III
8:00 p.m. Roger Fox
* If you would like to join the blogathon, contact joanneleon or Lady Libertine by kosmail.
1. Call your senators and representatives and tell them "Hell No!" with a priority on contacting senators. U.S. Capitol Switchboard at (202) 224-3121. You can find email contact information here
2. Contact the White House and tell them "Hell No!". Switchboard: 202-456-1414. Email contact page is here.
3. Petitions. There are a number of petitions available. Choose from the following or preferably sign them all.
a. White House petition calling for no cuts to Social Security.
b. AFL-CIO petition calling for no cuts to Social Security, Medicare, Medicaid and calling for more jobs, repealing the sequester and ending tax loopholes for the wealthiest individuals and corporations.
c. Sen. Harkin's petition telling Pres. Obama not to cut Social Security.
4. Social Media. Share this diary and promote this blogathon on Facebook and Google+ using the buttons at the top of the diary. Send this out on Twitter and add the hashtags #HellNo and #NoGrandBargain.
Blogathon diaries you might have missed
Hell No! #NoGrandBargain: "Pushing back at the Grand Bargain" by Roger Fox
Hell No! Chained CPI will reduce eligability for EITC #noChainedCPI by Roger Fox
Hell No! Dan Pfeiffer: "The President's Budget Shows That He is Serious About Solving Deficits" by eXtina
Guest Crosspost, Yves Smith: Obama Wants to Be the President Who Rolled Back the New Deal by Yves Smith via joanneleon
Hell No! Stop crushing the poor by Horace Boothroyd III
Hell, No! Social Security Contributes Nothing To Deficit by slinkerwink
Hell No! No Grand Bargain: Chained CPI: Social Security Means So Much To So Many by joedemocrat
Bill Black: “Wall Street Uses the Third Way to Lead its Assault on Social Security” by Bill Black via joanneleon
Hell No! Livestream. Petition delivered to White House. Millions of signatures. 12:30pm by Lady Libertine
Hell No! No Grand Bargain. Are "Progressives" Destroying the New Deal? by joe shikspack
#HellNo ! #ChainedCPI : $65 billion income tax increase on working families #noChainedCPI by Roger Fox
Hell No! Chained CPI is a Cut. You Either Care About People or You Don't. by priceman
Hell No! No Votes or Money To Dems Who Vote To Cut Social Security. by TomP
Hell No! No Grand Bargain Liveblog 2014 Budget press conference by joanneleon
Hell No! No Grand Bargain: Are We At War With Our Own Neoliberals? by Words In Action
Hell No! “Progressives Rage...Over Plan to Cut Social Security” (Pt. 1 of 2) by bobswern
Hell No! Pam Martens: “Progressives Rage...Over Plan to Cut Social Security…” (Pt. 2 of 2) by bobswern
Hell No! There's No Way to Vote Against Goldman Sachs by One Pissed Off Liberal
Hell No! Hands Off Social Security - This Has Gotten Personal by Puddytat
Hell No! Expand Social Security - Don't Cut It by Tool
Hell No! "Do You Think That Democracy Is Part of the Problem?” Attacks on Soc Security& Democracy by SouthernLiberalinMD
Hell No! The Ultimate Pushback against the Grand Bargain by Letsgetitdone
Hell No! Obama & The War on Seniors by CitizenOfEarth
Hell No! No Grand Bargain. Death of the Third Way: Son of Plutocracy by Words In Action
Hell No! Liveblog: Joint press conference AFL-CIO, House Progressive Caucus, Sens. Sanders & Harkins by joanneleon
"Hell no!" Why Toss 'Enrage the AARP' into an Already Tough 2014 Haul As Is? by LeftHandedMan
Hell No! I Am A Loco-Foco by Unitary Moonbat
Hell No! to Chained CPI: Defending the People’s Pension by cosmic debris
A Military Wife's Honest To God Opinion on the Grand Bargain. by angelajean
Hell No! Joe Biden in Iowa 2015 by 2laneIA
Hell No! Lieberman told us why Social Security must be cut by joanneleon
Hell No ! Chained CPI cuts Head Start, CHIPS, WIC, SNAP by Roger Fox
9:09 AM PT: The WH has included many so called protection to means tested programs, including the Federal Poverty guidelines, this is good. Except if C-CPI is not used for Poverty guidelines, then it appears Seniors will fall below the Poverty lines if C-CPI is applied to SS, in ever increasing numbers. Would Seniors on SS then be eligible for Food Stamps?
These protections dont make it clear what the impact will be, further muddying the waters. And it paints a rather strange picture as far as Seniors on SS falling below the Poverty guidelines.
9:51 AM PT: Protections found here:
Bumps to SS in 10 years and a bump to DI in 15 years> Have I read this right.