From the White House transcript: Obama DID include Chained CPI in negotiations.

[madfloridian]

54. This WAS the plan of the Third Way, literally. I posted about it.

It didn't last long because it was not a popular thing to say.

http://www.democraticunderground.com/10022021626

" Yesterday, the organization Third Way released a plan outlining several Social Security reform proposals meant to ensure the program's solvency over the next 75 years. The plan, called Saving Social Security, makes several fundamental changes to the program and cuts $2 in benefits for every $1 it increases taxes. The authors of the plan describe it as "savings-led" and say that by approaching Social Security reform in a progressive way, it's possible to come up with "a solvency plan that would make Franklin Roosevelt proud". The major points of the plan are summarized in the tables below:


Proposal Savings Through 2040 Portion of 75 year Budget Gap Closed

make benefits formula more progressive neutral no effect

index retirement age to longevity, reaching 70 by 2077 $1 trillion >one-third

cut payroll taxes in half for older workers unspecified modest cost

switch to chained CPI for COLAs $2 trillion ~one-third

increase payroll tax for high-income workers (with or without a FICA "donut hole" payment)

$1.2 trillion ~one-third

fully tax benefits for high-income seniors $500 billion modest improvement

means test benefits

immigration reforms (including surcharges on immigrant visas) $115 billion modest improvement
TOTAL <$5 trillion >100%