This critical House legislation, introduced by U.S. Reps. John “Jimmy” Duncan Jr., R-Tenn., and Daniel Lipinski, D-Il., along with six of their House colleagues, will finally end the use of the admittedly flawed Consumer Price Index now used to set Social Security Cost of Living Adjustments, and directs the Bureau of Labor Statistics to create a “CPI for Seniors” that is accurate, honest, and beyond reproach. Introduced Tuesday, March 15, H.R.1086 would mandate a broader, better, fairer CPI that would accurately measure the costs of inflation impacting older Americans everywhere.
RetireSafe President Thair Phillips called the two lead sponsors, Duncan and Lipinski, “true heroes for America’s seniors.” He noted that “Social Security beneficiaries and Military Retirees have been frozen in place with a zero COLA for two years running. While we all know health care costs have increased, food, energy, and clothing costs have also climbed.” Among those costs:
• Food: In January, food consumed at home posted its largest cost increase in more than two years.
Cash prices for corn, wheat, and soybeans have climbed 40 percent to 100 percent compared to price levels just one year ago. Beef prices are up more than 25 percent, year over year, and sugar prices are up 55 percent at year-end 2010 from last August.
• Energy: Gasoline prices now average well above $3 dollars a gallon nationwide. In some places, pump prices over $4 dollars a gallon are being seen. On February 14 gasoline prices were up by 20 percent over prices one year ago. Many households depending on fuel oil to heat their homes have seen their heating oil costs increase.
• Clothing: Cotton prices have doubled to levels not seen since the Civil War. The prices of other fabrics have jumped by roughly 50 percent as well. Some analysts expect clothing prices to rise by 10 percent in the coming months.
“Thanks to Representatives Duncan, Lipinski, and their outstanding cosponsors, Reps. Gregg Harper, R-Miss.; Paul Tonko, D-NY; Phil Roe, R-Tenn.; Marcia Fudge, D-Oh.; Sanford Bishop, D-Ga.; and Delegate Gregorio Kilili Camacho Sablan, Ind.-MP, this glaring wrong can finally be righted,” Phillips said. “I salute all of these fine individuals for their efforts to get the numbers right so that seniors are treated fairly,” he added. “We owe them all a debt of gratitude for working to finally correct this bogus CPI and the flawed COLAs that result from it,” he said. “We urge other members to join them in this effort by supporting H.R. 1086.”
