A so-called congressional supercommittee could soon hit taxpayers with a one-two punch. Fortunately, there is still time to stop this misguided proposal from hitting seniors and all Americans where it hurts in their wallet.
The supercommittee is considering adopting a new formula for calculating the Social Security cost of living adjustment (COLA) that would not only cut benefits, but also increase taxes.
While adopting the "chained CPI" may sound like nothing worth fighting, what the politicians meeting behind closed doors won't tell you is this proposal would cut Social Security benefits for seniors and future retirees by $112 billion and raise taxes on all Americans by $60 billion over the next 10 years.
And to add insult to injury, the tax hike would hit the most vulnerable the hardest. For example, by 2021, taxpayers making between $10,000 and $20,000 would see a 14.5 percent increase in their federal taxes with a chained CPI, according to an analysis by the Joint Committee on Taxation.
Congress needs to reduce the deficit, but in these tough economic times, a proposal that cuts Social Security benefits and increases taxes, especially on those who can least afford it, is a low blow.