A not-so-unkind cut - Social Security COLAs

Brief

A not-so-unkind cut - Social Security COLAs

Commentary
June 29, 1999

Abstract

[Christian Science Monitor] As Congress begins meeting off-camera to pursue the politically charged debate over Social Security for baby boomers, reducing the cost of living adjustments (COLAs) is sure to resurface as a strategy. For all the unpopularity of such a proposition, it may actually be the best way to bring down rising Social Security costs - expected to jump from just over 4.5 percent of GDP in 1999 to nearly 7 percent by 2030 - and avoid higher payroll taxes. But such cuts must be accompanied by compensatory supports for the oldest and poorest who receive benefits, or else this vulnerable group will be hardest hit, and the ranks of the poor will swell.

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