Veterans groups gear up to fight any proposed changes to disability payments
To help reduce the deficit, President Barack Obama has suggested using a different measure of inflation to calculate Social Security benefits, leading to a slower growth rate. Veterans groups worry such a change could apply to disability payments.
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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.Skip to next paragraph
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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.
"I don't believe the American people want to see our budget balanced on the backs of disabled veterans. It's especially absurd for the White House, which has been quite generous in terms of funding for the VA," said Sanders, I-Vt. "Why they now want to do this, I just don't understand."
Sanders succeeded in getting the Senate to approve an amendment last week against changing how the cost-of-living increases are calculated, but the vote was largely symbolic. Lawmakers would still have a decision to make if moving to chained CPI were to be included as part of a bargain on taxes and spending.