Congresswoman Gloria Negrete McLeod (D-Chino) released the following statement following the release of President Obama's budget proposal containing deficit-cutting measures that includes changing the calculation of inflation to "Chained" Consumer Price Index (CPI), a measure that would cut benefits for Social Security recipients, disabled veterans and other federally funded programs:
"This is a benefit cut, period," said Congresswoman Negrete McLeod. "I support President Obama, but believe it is harmful to cut Social Security benefits for seniors, veterans, and children."
Inflation measured through the proposed "Chained" CPI would grow more slowly through time resulting in a lower cost-of-living adjustment for federally funded programs. The new measure assumes that benefits do not need to rise as fast because federal program beneficiaries will change their buying habits when products become more expensive resulting in lower payments.
"Switching to 'Chained' CPI would not be in the best interest of seniors," explained Congresswoman Negrete McLeod. "Seniors tend to have more health care needs than the rest of the population requiring costly medical expenses, and probably face true inflation that's higher, not lower, than current measures of inflation suggest. I do not support cuts to Social Security."