Corey Boles and Janet Hook are reporting for Dow Jones Newswire,
Lawmakers are considering changing how the Consumer Price Index is calculated, a move that could save perhaps $220 billion and represent significant progress in the ongoing federal debt ceiling and deficit reduction talks.
Republicans and democrats are throwing everything on the table, but this is,
a rare proposal in that it would likely lead to both lower benefits paid to seniors and higher taxes paid by most people who pay federal income tax. As such, it could allow Republicans to argue they are tackling federal entitlement programs such as Social Security, and permit Democrats to say they are increasing taxes as part of any budget deal that is reached.
Meanwhile Jane Wells reports for CNBC that price increases are real, “look at the facts over the last year, bread up 8%, meat up 12%, milk up 15%, gas, 37%, coffee 40%. even women’s underwear index is up double digits.”