Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal Tech Talk
- The Future of Government Data Centers
- The Future of IT: How CIOs Can Enable the Service-Oriented Enterprise
- Government Perspectives on Mobility and the Cloud
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Mitigating Insider Threats in Virtual & Cloud Environments
- Modern Mission Critical Series
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Reimagining the Next Generation of Government
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
A primer on chained Consumer Price Index
Thursday - 4/11/2013, 4:01am EDT
The Associated Press
President Barack Obama's 2014 budget includes a key change in the way the government measures inflation. If adopted, the chained Consumer Price Index would have far-reaching effects because so many programs are adjusted each year based on year-to-year changes in consumer prices.
How it would work:
The new measure would show a lower level of inflation than the more widely used Consumer Price Index.
It assumes that as prices rise, consumers would turn 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 rather than pay the higher beef prices.
What it would save:
The change would reduce the federal budget deficit by $230 billion over the next decade, according to Obama's budget proposal. Of that, $100 billion would come from higher tax revenues because annual inflation adjustments to tax brackets, the standard deduction and personal exemptions would be smaller.
How it's perceived:
The proposed change is unpopular among many Democrats in Congress and advocates for seniors who complain that it would disproportionately hit low- and middle-income families.
It's popular among budget hawks because it cuts benefits and increases taxes gradually, in ways that might not be readily apparent to most Americans. The savings, however, become substantial over time.
What would be cut:
Obama's budget proposal did not specify the impact on individual benefit programs. The Congressional Budget Office in an earlier analysis estimated the total benefit reductions over the next decade at:
-- Social Security: $127 billion.
-- Federal retirement programs for military and civilian workers and Supplemental Security Income: $38 billion.
-- Medicare and Medicaid: $29 billion.
On average, annual increases in Social Security payments, government pensions and veterans' benefits would be about 0.3 percentage points smaller each year, according to the chief actuary for the Social Security Administration.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.