Washington, DC – A leading deficit reduction proposal is to “tweak” the official inflation measure used to annually adjust Social Security benefits, other government programs, and income tax brackets. Proponents of this proposal argue that a relatively new inflation measure, the Chained CPI, is more accurate than the current index and the decrease in benefits to the programs affected would be balanced by increased tax revenue from the wealthy. A new issue brief from the Center for Economic and Policy Research (CEPR) examines these issues and finds the opposite to be true.
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