Monday, February 11, 2013

The President wants a Big Deal now. Chained CPI is a very big deal.

Q: Can you clarify for me very clearly? (click here) Is the president open to raising the eligibility age for Medicare?
MR. CARNEY: No.
Q: Absolutely not?
MR. CARNEY: The president’s made clear that we don’t believe that that’s the right policy to take. [...]
Q: What about reducing the annual cost-of-living increases for Social Security recipients?
MR. CARNEY: Again, as part of a big deal, part of a comprehensive package that reduces our deficit and achieves that $4 trillion goal that was set out by so many people in and outside of government a number of years ago, he would consider the hard choice that includes the so-called chained CPI — in fact, he put that on the table in his proposal — but not in a cherry-picked or piecemeal way. [...]
He has put forward, as a technical change, as part of a big deal—and it’s on the table that he put forward to the speaker of the House. [...] But as part of that deal, a technical change in the so-called CPI is possible and is on offer as part of a big deal.