Press Conference: Progressive Price Indexing

President Bush just said:

I propose a system where benefits for low income workers will grow faster than those that are better off.

He is referring to something called “progressive price indexing.” Progressive price indexing means huge benefit cuts for the middle class. Here are the numbers from CBPP:

Progressive price indexing would reduce annual benefits for an average wage-earner who is 25 today and retires in 2045 by 16 percent…For an average-earner who retires in 2075, the benefit reduction would be 28 percent or $7,629 in today’s dollars…