CPI Should Reflect Economic Reality

In “CPI Squabble Diverts Attention From Real Issues” (View From Washington, March 30), Robert Rosenblatt claims that your “typical” 65-year-old widow would lose $3,900 in Social Security benefits by 2005 and that a middle-income family with two children would pay $1,400 more in federal taxes. Those figures have to be based upon some assumptions of inflation rates over the next eight years, something even the most astute economist hasn’t been able to do or even predict. How can a meaningful discussion on balancing the budget take place until we correct the inaccuracies that have a direct effect on balancing the budget?

Changing the consumer price index to more accurately reflect what is really happening doesn’t take money out of people’s pockets. In the case of the 65-year-old widow, it simply reduces the amount that will be (future tense) improperly stuffed into her pockets. In the case of the middle-income family, it simply means the tax bracket creep will be less and thus they will be paying the intended tax on their income rather than awarded an unintended tax break.

GERALD SCHNEIR

Santa Monica