Be wary of politicians bearing gifts.
The “Fair COLA for Seniors Act of 2021” introduced in the House of Representatives on July 1 by Rep. John Garamendi (D-CA) would require Social Security to use the experimental Consumer Price Index for the Elderly (CPI-E) instead of the Department of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to calculate the annual COLA, which supporters say would lead to a more equitable cost of living adjustment for seniors. H.R. 4315 would increase benefits and ensure that cost of living adjustments in Social Security reflect what Garamendi said, in a press release, “were the real rising costs for seniors and disabled Americans.”
It’s not what it appears to be and here’s why.