December 30, 2012
Readers of the NYT article on the latest developments in the budget negotiations may have not realized that the Republican demands for changing the indexation formula for the Social Security cost of living adjustment is equivalent to a 3 percent cut in benefits for a typical retiree. The new formula would lower the adjustment by approximately 0.3 percentage points each year. This means that a retiree would be receiving 3 percent lower benefits after 10 years, 6 percent lower benefits after 20 years and 9 percent lower benefits after 30 years. If a typical retiree collects benefits for 20 years then the average reduction in benefits would be about 3.0 percent.
The piece also claims that:
“Both sides worry that the confrontational tone that the president took on “Meet the Press” was not helpful.”
It only included comments from Republicans who didn’t like President Obama’s tone. There were no Democrats cited who had this attitude, even off the record.
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