Next week, the Obama administration will release a budget request for 2015. The proposal reportedly will not call for the the use of "chained CPI" as a means of slowing the rate of cost-of-living increases in the Social Security program. Chained CPI (Consumer Price Index) would take into account the change of consumer spending habits that comes with decreased income, rather than calculating CPI strictly using the inflation rate. The result of using this calculation method is that the rate of growth of benefits would diminish, resulting in cost savings as less money is spent on the program. Last year, Obama had offered using chained CPI in discussions with Republican leadership in an attempt to hammer out a "grand bargain" on the nation's debt and the budget.
Speaker of the House John Boehner (R-OH) and Senate Minority Leader Mitch McConnell (R-KY) were both critical of this news, saying that not including this calculation method in the proposed budget is an indicator that the President is not serious about debt reduction. Democrats, meanwhile, applauded the move to take chained CPI out of the proposal. More than one hundred Democratic House members and sixteen Democratic Senators had written to President Obama urging him to drop chained CPI, out of concern that its inclusion would be a political liability in this year's midterm elections. The White House, in a statement, said the offer "remains on the table for whenever the Republicans decide they want to engage in a serious discussion," but that the concession would not be included in the new budget request.
Source: The Hill