Niagara Gazette

Local News

March 31, 2013

Veterans fight changes to disability payments

(Continued)

Niagara Gazette — Supporters argue that chained CPI is a truer indication of inflation because it measures changes in consumer behavior. It also tends to be less than the conventional CPI, which would impact how cost-of-living raises are computed.

Under the current inflation update, monthly disability and pension payments increased 1.7 percent this year. Under chained CPI, those payments would have increased 1.4 percent.

The Congressional Budget Office projects that moving to chained CPI would trim the deficit by nearly $340 billion over the next decade. About two-thirds of the deficit closing would come from less spending and the other third would come from additional revenue because of adjustments that tax brackets would undergo.

Isabel Sawhill, a senior fellow in economic studies at The Brookings Institution, a Washington-based think tank, said she understands why veterans, senior citizens and others have come out against the change, but she believes it’s necessary.

“We are in an era where benefits are going to be reduced and revenues are going to rise. There’s just no way around that. We’re on an unsustainable fiscal course,” Sawhill said. “Dealing with it is going to be painful, and the American public has not yet accepted that. As long as every group keeps saying, ‘I need a carve-out, I need an exception,’ this is not going to work.”

Sawhill argued that making changes now will actually make it easier for veterans in the long run.

“The longer we wait to make these changes, the worse the hole we’ll be in and the more draconian the cuts will have to be,” she said.

That’s not the way Sen. Bernie Sanders sees it. The chairman of the Senate Committee on Veterans’ Affairs said he recently warned Obama that every veterans group he knows of has come out strongly against changing the benefit calculations for disability benefits and pensions by using chained CPI.

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