What follows is a slightly edited version of an email Sen. Elizabeth Warren sent out on Thursday to supporters via email.
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Many economists and advocates have called on the government to use a different price index for Social Security benefits that more accurately measures the cost of living for elderly Americans-the Bureau of Labor Statistics actually already tabulates this, called the CPI-E, in a strictly “experimental” mode, but doesn’t apply it. That formula showed a 0.6 percent increase in the cost of living over the a year ago, and elsewhere, core goods and services are up 2 percent. Seventy-nine percent of likely voters – Democrats, Republicans and independents – support expanding Social Security benefits and paying for it by asking the wealthy to pay their fair share.
The senator, who blasted the idea of taxpayers funding corporate CEO bonuses when others won’t see federal benefit increases, contended that, to her, the issue is “pretty straightforward”. The pair noted that the check would equal 3.9 percent of existing benefits, the same percentage that CEO pay rose in 2014. Well, times are tough for America’s seniors – but they aren’t tough for everyone.
The bill would pay for the increase by ending the write-off of performance-based executive compensation.
The legislation would fund the one-time emergency payment to seniors by closing the performance-pay loophole.
Under the Warren-Sanders bill, the rest of the revenue raised by killing that corporate tax break would go toward shoring up the Social Security and Disability trust funds, which got a much-needed cash infusion as part of the most recent budget agreement.
Think about what this change would mean.
The Social Security Administration announced in mid-October that monthly Social Security and Supplemental Security Income benefits for almost 65 million Americans will not automatically increase come 2016. 2016 is set to be only the third year since 1975 when Social Security won’t get any cost-of-living increase, joining 2010 and 2011.
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This is about choices.
