Chained CPI is a middle-class tax hike.

Chained CPI—It's a Middle-Class Tax Hike Too

Moneybox
A blog about business and economics.
Dec. 18 2012 1:57 PM

Chained CPI—It's a Middle-Class Tax Hike Too

In my original chained CPI article I noted that one reason deficit hawks like this method of cutting Social Security so much is that it's also a tax increase!

That's because Social Security checks aren't the only thing indexed to inflation, tax bracket thresholds are as well. So when the federal government switches to the C-CPI-U, households will "creep" upwards into higher brackets a bit faster than they otherwise would. This raises about $60 billion in the relevant scoring window, but the White House doesn't want to count that $60 billion in the math perhaps because they don't want to draw attention to the fact that this—yes—violates their much-repeated pledge to never raise a dime of tax revenue for the non-rich. I've been saying that was a dumb pledge for years, so I don't mind. But it is what it is.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

  Slate Plus
Lexicon Valley
Feb. 26 2015 11:56 AM Why It’s Slatesters, not Slate-sters Overheard on email: Slate’s copy desk rounds up its February style and grammar rulings.