You might want to call your Senator or email your Senator when you are done reading this, so here is the LINK for that.

Obama’s budget will be released April 10th. That means you have four days to turn up the heat in the Senate against his legislating a chained CPI for Social Security, and cuts to Medicare. The Chained cpi will cut Social Security benefits at .3%; 3% in ten years; 6% in twenty years; and 9% in thirty years. Everyone will get the cut.

Chart of SSI under CPI plans
Compared to the rich the average SS beneficiary would take a 2% cut in income from the chained cpi, whereas the persons earning $500,000 would take around .6%, (proportionately less than a third of the cut to the SS beneficiary’s income) cut in income in the recent tax hike. In a graph from CEPR, Dean Baker demonstrates the comparison:

Chained CPI and Obama Tax increases
Here are two articles to read about this: The NYTimes. In addition to the chained cpi,….

“Mr. Obama’s proposed spending reductions include about $400 billion from health programs and $200 billion from other areas, including farm subsidies, federal employee retirement programs, the Postal Service and the unemployment compensation system.”

The Washington Post:

“The budget proposal slices $200 billion from already tight defense and domestic budgets. It would cut $400 billion from Medicare and other health programs by negotiating better prescription drug prices and asking wealthy seniors to pay more, among other policies. It would also generate $200 billion in savings by scaling back farm subsidies and federal retiree programs, among other proposals.

The proposal to change the formula to calculate Social Security payments, also originally part of the offer to Boehner, would generate $130 billion in savings and $100 billion in revenue, a result of the impact of the formula change on other government programs.”

Bloomberg:

“This would be paid for by raising taxes on cigarettes and other tobacco products, according to the White House. The amount of the new taxes wasn’t specified.

The budget will call for raising about $9 billion over a decade by prohibiting individuals from accumulating more than $3 million in Individual Retirement Accounts and other tax- retirement instruments. A $3 million limit would be about equal to an annuity of as much as $205,000 a year, according to the White House.”

Which side are your Senators On? Call them or write them and ask! Obama won’t run again in 2016, but many Senators will run for election again. Their silence now would be an indictment of their promises to protect social insurance programs from cuts. Let them know where you stand.

Old image of a street ruckus

Let’s raise the roof! And make some noise!

Congress critters too.