Daily Corinthian • Tuesday, November 8, 2011 • 15A
New formula could cut future benefits NICK BAIN BY STEPHEN OHLEMACHER Associated Press
WASHINGTON — Just as 55 million Social Security recipients are about to get their first benefit increase in three years, Congress is looking at reducing future raises by adopting a new measure of inflation that also would increase taxes for most families — the biggest impact falling on those with low incomes. If adopted across the government, the inflation measure would have widespread ramifications. Future increases in veterans’ benefits and pensions for federal workers and military personnel would be smaller. And over time, fewer people would qualify for Medicaid, Head Start, food stamps, school lunch programs and home heating assistance than under the current measure. Taxes would go up by $60 billion over the next decade because annual adjustments to the tax brackets would be smaller, resulting in more people jumping into higher tax brackets because their wages rose faster than the new inflation measure. Annual increases in the standard deduction and personal exemptions would become smaller. Despite fierce opposition from seniors groups, the proposal is gaining momentum in part because it would let policymakers gradually cut benefits and increase taxes in a way that might not be readily apparent to most Americans. Changes at first would be small — the Social Security increase would be cut by just a few dollars in the first year. But the impact, as well as savings to the government, would grow over time, generating about $200 billion in the first decade and much more after that. The proposal to adopt a new Consumer Price Index was floated by the Obama administration during deficit reduction talks in the summer. Now, it is one of the few options supported by both Democratic and Republican members of a joint supercommittee in Congress working to reduce government borrowing. The committee of six Democrats and six Republicans is struggling to come up with a plan to reduce government red ink by at least $1.2 trillion over the next decade. Changing the inflation index alone would put them a sixth of the way there. “I think the thought process behind this is, slip this in, people won’t understand it,” said Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare. Richtman’s group is spending about $2 million on radio, TV and direct mail ads to fight cuts in Social Security and Medicare. His message to Congress: “Don’t believe that taking this approach to cutting Social Security will not be noticed. You will pay for it.” A TV ad by AARP puts it this way: “We are 50 million seniors who earned our benefits, and you will be hearing from us today — and on Election Day.” The inflation measure under consideration is called the Chained Consumer Price Index, or chained CPI. On average, the measure shows a lower level of inflation than the more widely used CPI for All Urban Consumers. Many economists argue that the chained CPI is more accurate because it assumes that as prices increase, consumers switch to lower cost alternatives, reducing the amount of inflation they experience. For example, if the price of beef increases while the price of pork does not, people will buy more pork. Or, as opponents mockingly argue, if
the price of home heating oil goes up, people will turn down their heat and wear more sweaters. A report by the Moment of Truth Project, a group formed to promote the deficit reduction package produced by President Barack Obama’s deficit commission late last year, supports a new inflation measure. “Rather than serving to raise taxes and cut benefits, switching to the chained CPI would simply be fulfilling the mission of properly adjusting for cost of living,” it argues. The new measure would reduce Social Security cost-of-living adjustments, or COLAs, by an average of 0.3 percentage points each year, according to the Social Security Administration. Next year’s increase, the first since 2009, will be 3.6 percent, starting in January. Under the chained CPI, yearly benefits for a typical 65-year-old would be about $136 less, according to an analysis of Social Security data. At age 75, annual benefits under the new index would be $560 less. At 85, the cut would be $984 a year, and at 95, the annual income loss would amount to $1,392. “For someone in the first year, it may not seem a lot,” said AARP’s David Certner. “But as people get older and then they get poorer and more reliant on Social Security, the cut gradually gets larger and larger.” In all, adopting the chained CPI would reduce Social Security benefits by $112 billion over the next decade. Federal civilian and military pensions would be $24 billion lower, according to the nonpartisan Congressional Budget Office. If adopted across the government, fewer people would be eligible for
many anti-poverty programs because the poverty level also would increase at a lower rate each year. That would result in fewer people living below the official poverty line, despite having the same income. The tax increases would hit low-income families the hardest, while highincome taxpayers would see smaller changes. The wealthiest taxpayers already pay taxes at the highest marginal rate, currently 35 percent. For example, by 2021, taxpayers making between $10,000 and $20,000 would see a 14.5 percent
increase in their federal taxes with a chained CPI, according to an analysis by the Joint Committee on Taxation. Taxpayers making more than $1 million would get a tax increase of 0.1 percent. Despite the political backlash, some lawmakers see the new inflation measure as a way to help break the deadlock in Washington over tax increases and cuts in benefit programs. Most Republicans adamantly oppose tax increases, while Democrats have said they won’t support benefit cuts without a substantial increase in revenue.
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MEDICAL PLAZA PHARMACY 111 Alcorn Drive • Corinth, MS
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What God Expects of Me! Man belongs to God by right of Creation. He made us in His own image and gave man priority over all other things of creation. Surely, man is not worthy of this. The Bible-- “What is man, that thou art mindful of him?--Thou madest him to have dominion over the works of thy hands; thou hast put all things under his feet--.”(Psalms 8:4-6.) Man belongs to God by redemption. Christ paid the east by shedding His blood on the cross. Thus, forgiveness of sins was made possible. The Bible--- “For ye were bought with a price: therefore glorify God in your body, and in your spirit, which are God’s”(I Cor 6:20.) In view of all of this, what does God have a right to expect of ME-US? God has the right to expect that we open our ears and mind to His instruction. The Bible-- “He that hath an ear, let him hear what the Spirit saith unto the churches” (Rev. 2:11.) “Take heed to what ye hear” (Mark 4:24.) “Take heed therefore how ye hear” (Luke 8:18.) We need to hear with open hearts - ready to receive-obey-the truths of God. God expects that we shall have honest hearts with which to receive His word. The Bible -- “But that on the good ground are they, which is an honest and good heart, having heard the word, keep it, and bring forth fruit with patience” (Luke 8:15.) We should want to do God’s will because it is right. Our religion must please God. God expects whole-hearted obedience to His word. “But---ye have obeyed from the heart that form of doctrine-instruction-which was delivered unto you. Being made free from sin, ye became the servants of righteousness” (Rom 6:17-18.) We need to have the disposition, “Speak Lord-Bible teaching-the servant heareth; command, and I will obey. We read it in God’s word: we need to believe and obey it. The Lord’s way is right. It is settled. God has a right to expect that we love Him, above all others. The first and great commandment of the law was, “ Thou shalt love the Lord thy God with all thy heart, and with all thy soul, and with all thy mind” (Matt. 22:37.) To love God with our “ALL” is to be fully dedicated to His service. Hear His Word - Believe His Word - Repent of every sin - Baptisim is for remission of sins. What can we learn? We must obey God to be saved. My friends, have you? Come visit with us.
Northside Church of Christ 3127 Harper Road - Corinth, MS - 286-6256 Minister - Lennis Nowell
611 Cruise St., Corinth, MS 662-287-9181 • Tues-Sat 10am-5pm 662-287-9181 Follow us on FaceBook @ Doodlebugs (Toys & More)
Schedule of Services Sunday Morning Bible Study........................................................... 9:45 Sunday Morning Worship Service ................................................. 10:35 Sunday Evening Worship Service .................................................... 6:00 Wednesday Night Bible Study ......................................................... 7:00 You are cordially invited to attend every service.
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To: Citizens of Alcorn County From: Tommy Bain
If you’re not at your old job, your 401K shouldn’t be either. Chuck Counce of BancorpSouth Investment Services, Inc., specializes in retirement plan rollovers. Call him for a free consultation on rollover options and other investment products and services. Contact Chuck at 662-396-6016. Investment Services, Inc. Not FDIC No bank guarantee. insured. May lose value.
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Over the past five months I have been welcomed into your homes and I am thankful to be reacquainted with old friends. I came to know many of you during my thirty years as an employee of Magnolia Regional Health Center. Some of you I worked with and some of you were my patients, but I came to know and care for each of you. This same love for people and desire to help those in need is present in my son, Nick Bain. Throughout Nick’s life, he has always had a heart for serving people and has been willing to go the extra mile for someone in need. That is why we need Nick in Jackson! On Tuesday, November 8, please go to the polls and vote for Nick Bain for State Representative, House District 2. Thank you, Tommy Bain
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STATE REPRESENTATIVE RECOMMENDED FOR ELECTION TO THE MISSISSIPPI HOUSE OF REPRESENTATIVES BY:
★ Mississippi Right to Life ★ Mississippi Association of Educators ★ Received an A RATING National Rifle Association
1514 Fillmore St. Corinth, MS 38834 (662) 287-1620 nrbain@hotmail.com PAID FOR BY FRIENDS OF NICK BAIN