What chained CPI will do to each of the five income quintiles of SocSec beneficiaries

[kmlisle]

8. Look at Ezra Klines column in the NYT

He did a full analysis which says that it will not only lower in comes but also increase taxes for the middle class with the highest percentage increase coming at the 20-30 thous dollar range and the least increase coming - wait for it!- for the rich.

I just think of it like management fees on a retirement account. we all know that if a 1 or 2 percent fee on your account over 20 years (remember one "problem" is that we a re living longer) makes a huge difference on how much that account earns because every years increase is based on how much you already have and the smaller increase magnifies the loss. The same is true of the CPI - if you make less one year because of a smaller increase in cost of living then the next year the cost of living increase is based on a that income magnifying your loss more and more each year. Anyone with a retirement nest egg is very aware of this and should be able to understand the sneaky effects of the CPI. They think we are dumb!