Previously, I have mentioned that the Inflation number that the “government” uses is too low. I have also said that the government has a VESTED interest in this number remaining low. This post does not mean to single out one political party over another, as they BOTH do this manipulation. I am merely using the current administration as an example, because they are the current administration.
“Those talks involve Democratic and Republican lawmakers from both chambers and are led by Vice President Joe Biden.” See, both sides are involved. It appears as though Vice President “The new sheriff in town” Biden, the one that was over seeing TARP so that NO money was “misused”, is proposing the changes.
“Such a move is widely seen by economists as resulting in a slower rise in inflation. That would impact an array of federal programs that are linked to CPI including the Social Security program and income tax brackets set by the federal government.” This means that two things WILL happen. 1) Social Security payments will not rise as quickly, most likely TRAILING real inflation, and 2) the changes in Income Tax Brackets will not rise with inflation (meaning when you tell your boss that you need more money to survive, and they give you a “raise” (LOL, sorry), that you will be paying more in taxes). I call this a STEALTH TAX.
“Lawmakers are considering changing how the Consumer Price Index is calculated, a move that could save perhaps $220 billion…” This money comes from YOU!! This comes from any “program” that is indexed to the CPI. The main one being Social Security. This is NOT a “tax on the RICH”!! This is a tax on average America. But the politicians are trying to get away with this “manipulation”, without calling it a TAX. The Government is AGAIN attempting to manipulate the numbers, so that what they ARE doing looks better.
I will say it again, the Government has a VESTED interest in the “reported inflation rate” remaining low, not 0% or below. The number that they “use” IS incorrect as it relates to average America, and the errors benefit the Government ALWAYS! We need to remove this system from the control of corrupt/ignorant politicians. Go back to the original formula. Do not let them have the power to change it. MAKE them live with the same Inflation that WE are experiencing!