Weighing the Pros and Cons of Chained CPI

Following the  talk-of-the-town budget proposal released by U.S. President Barack Obama that was eventually approved by the Republicans in the end despite the oppositions from the Democrats and other government and non-government organizations, the lawmakers are now examining the impacts of the so-called chained Consumer Price Index (CPI).

Several media sources have confirmed that the lawmakers on House Committee on Ways and Means Sub-committee on Social Security today take a closer look on the effects of the new proposed formula on the federal programs. According to reports, house examines whether using a chained CPI formula to calculate Social Security benefits is the right way to reduce the program’s future costs.

During a hearing, people asked how chained CPI differs from the current index. As a response, a spokesperson from the Bureau of Labor Statistics (BLS) explained that the current CPI is the index used for all urban consumers or the CPI-U while the chained CPI is the latest in the stage in the development of today’s cost of living measures and improves on the CPI-U by considering how consumers substitute among goods when the price changes of those goods vary. The agency came up with such formula by using price surveys, consumption expenditure survey and formulas to figure monthly estimates of changes in the cost of living, the spokesperson stressed.

In addition, the co-chair of The Strengthen Social Security Coalition has also agreed that the new formula is a better gauge than the current index for seniors since the increasing healthcare cost consumes more of their expenses, which is reflected in the new CPI-U.

On the contrary, a ranking member of the Subcommittee argued that changing the CPI would simply means a cut to future recipients’ benefits.

Consequently, pros and cons regarding the chained CPI were further argued, but so far, neither the advocates nor the opponents spotted a sure win.

Nevertheless, advocates of the new formula continue to push the same. They believe that the proposed changes would finally bring a technical improvement in the country’s cost cutting efforts, speculated by a Los Angeles disability lawyer.

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Republicans Embrace Obama’s Offer to Trim Social Security

Few days after President Barack Obama’s budget plan has been released, the democrats were obviously quite disappointed while the republicans have their split reactions. While some GOP politicians were also fury with the president’s recently released budget plan, others were pleased, believing that the budget seems promising.

Last Wednesday, the White House finally and officially released its budget plan that was said to reduce the federal deficit by $3.77 trillion by reducing the growth of social security and other pool of federal programs like Healthcare services while adding more taxes on wealthy Americans.

Subsequently, the said offer gained different reactions. Obviously, seniors and veterans were quite disappointed and the democrats also sympathize with them while the republicans had their split reactions. However, recent news reports claimed that the republican leaders are now totally embracing the budget proposal and in fact, the GOPs are currently rushing to begin a debate tackling the deeper aspect of the sensitive topic of federal spending of the seniors.

Recent reports confirmed that two House subcommittees plan to hold a series of hearings this week. The hearing will talk about the “reforms to protect and preserve” programs for retirees, beginning from Obama’s budget offer to apply a less generous formula of inflation to annual increase in Social Security disability benefits. Higher Medicare premiums, lesser amount on pay checks for seniors and higher Medicare eligibility are also on the table.

The said developments shows an important signal in the shift of budget battle as party leaders to push the federal debt limit. Finally, after more than a couple of years talking about taxes and government spending, policymakers seems ready to move toward a more serious and sensitive field of entitlement programs.

At least the republican leaders now have made reducing the cost of federal entitlements their top priority. In fact, in a statement released by a budget analyst, Medicare, Medicaid and Social Security account for approximately 40 percent of federal spending and continuously growing rapidly, as the government must provide benefits to all who qualify under the entitlement, regardless of cost. In addition, although the new formula known as the chained CPI would reduce the benefits by 0.3 percent annually, in the long run, it would save the program from the projected exhaustion of funds.

Meanwhile, a Los Angeles permanent disability lawyer herein remains neutral, and not providing his stance regarding the matter. He understands where the democrats and republicans are coming from and knows that both parties simply want the best for the entire nation. Nevertheless, he is still hoping for the best for everyone, particularly the seniors and veterans who needed the most that the government can provide.

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Obama’s Plan to Cut Social Security Benefits Sparks Outrage

Image gives credit to MoveOn.

Following the announcement of President Barack Obama’s proposed plan to include budget cuts on Social Security to the chained Consumer Price Index (CPI), outrages opposing the said plan started to take its toll.

In his recent announcement last week, Obama announced his proposed plan that will reduce the growth of Social Security and other disability benefit programs while still pushing on more taxes from the wealthy Americans. The plan was said to be part of the administration’s attempt to strike a broad deficit-cutting deal with the Republicans, an administration official revealed.

Accordingly, the budget cut will reduce the federal government deficit by $1.8 trillion over a decade. However, the Congressional Republicans turned down his proposal due to its significant demand in tax revenue which would reach to more than $1 trillion.

This new proposed plan is actually a revised inflation adjustment which is referred to as the chained CPI. Unfortunately, the new formula would kill the annual increases in a broad course of government programs. Apparently, it would have its biggest impact on the Social Security since it will include a reduction in Medicare spending and Social Security payments. Therefore, seniors will likely receive smaller Social Security checks.

In addition, aside from the veterans, seniors, and the people with disabilities, the new formula would greatly affect the poor Americans said by a Los Angeles SSI lawyer. In fact, a lot of Americans, including those who re-elected him, were hardly surprised by his proposed plan, he added.

Consequently, some liberal groups in Pennsylvania started to descend, forming a protest on the president’s decision to include Social Security programs in his upcoming budget. The liberals were said to be gathering 2 million petitioners to demand the administration to draw its support for the chained CPI. Also, they have mounted “emergency” online campaigns against the said proposal accusing Obama of betraying his very own supporters who helped him in his recent presidential candidacy.

So far, the entire nation is waiting for the releasing of Obama’s budget to determine whether the president pursued on its plan to support the chained CPI or did he chose to exclude the federal programs in the proposed budget in consideration of his electoral supporters.

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Fool-proof Tips to Stay Away from Identity Thieves

The Social Security numbers of several celebrities and political figures were recently leaked online, causing some people to grow concern about their privacy. As a result of the incident, some claim that the fraudulent acts of identity thieves and scam artists becoming more complicated and serious.

Consequently, many Los Angeles social security claim lawyers suggest everyone to be cautious of identity thieves who are always scheming ways to get the Social Security numbers of Social Security beneficiaries. Based on statistics, millions of people are being victimized by identity thieves each year.

Identity thieves have many crafty ways to obtain a person’s confidential information. Here are some of their tricky ways to get what they need:

•    Stealing wallets, bags or purses, mails and even laptops.

•    Posing as someone from the Social Security Administration (SSA) or credit card company, who legally needs an update of your personal information, through phone or email.

•    Hacking unsecured website on the virtual world to steal personal information that users provided.

•    Stealing personal records from businesses, at work or even from your own home.

•    Searching through your trash, the business’ trash or public trash for possible personal data.

It is very necessary nowadays to be alert all the time. Always take the proper precautions. Be sure that your personal information like your Social Security number, credit card number, and mother’s maiden name are secured.

Take note that once an individual steals someone else’s personal information, it could result into something more than just financial loss, say credit bad record.

Here are some ways how you could safeguard your personal information:

•    Do not bring your social security card with you when you go out and instead, put it in a secured place where no one else can access.

•    Be careful when disclosing your personal information to unknown sources online or by phone.

•    Shred or thorn your documents, bills or paper works before you throw it away.

•    Avoid responding to emails asking for your social security number, bank accounts and other personal information.

•    If someone calls you claiming to be from the SSA and you have doubts about the credibility of the caller, you can call the agency by yourself to determine the validity of the caller.

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