RJ Eskow reported yesterday on a rumored deal coming out of the deficit commission on Social Security. It sounds like a really bad version of progressive price indexing, where benefits are cut for the vast majority of beneficiaries while they are raised slightly for those at the lowest income. This will be pitched as “saving” Social Security by cutting it for almost everyone, and will turn it into more of a welfare program than a social insurance program into which everybody pays.
The new proposal would pit middle-class seniors against the elderly poor, forcing them to compete for a stripped-down pool of dollars. The end result would be the one that many Commission members have pursued for years: to cut the most stable and successful program in the Federal government’s history.