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A widely-discussed plan to reduce the federal deficit would use a slower-growing consumer price index, known as the "chained" CPI, to calculate the annual cost-of-living adjustment. The proposal, often referred to as "chaining" the COLA, would not be the first time the government has tweaked the inflation index to cut government spending on benefit programs.For years, TSCL has been advocating on Capitol Hill for a more fair and accurate Social Security COLA for beneficiaries. The Consumer Price Index for Elderly Consumers Act legislation introduced by Rep. Michael Honda is a common-sense solution that would better protect the purchasing power of Social Security benefits since it would use a more accurate measure of inflation..you need to start distributions. Most types of retirement accounts other than.Most Americans contribute 6.2 percent of every paycheck to Social Security, but workers earning over 2,900 contribute nothing over that amoun,t due to a payroll tax cap. Around 75% of Social Security beneficiaries believe the Social Security taxable maximum should be eliminated to extend the solvency of the Trust Funds responsibly, without cutting benefits. Do you agree?.The federal government negotiates prescription drug prices for Medicaid enrollees and for veterans, but it is not allowed to negotiate lower prices for Medicare beneficiaries. Do you support this policy?.The car isn't washed..The Social Security taxable maximum is tied to the wage index, but according to the Congressional Budget Office, the limit on the amount of wages that can be taxed has not kept up with the growth of wages of the most highly paid workers. Because wages for high - income earners are growing faster than for other workers, the taxable share of the nation's earnings subject to Social Security payroll taxes is falling - from 90 percent in 1983 to 82 percent in 201The trend is forecast to continue, with the CBO projecting the share of earnings subject to payroll taxation to drop to below 78 percent by 2026..In the days ahead, The Senior Citizens League will keep a close eye on the evolving budget negotiations, and we will continue to advocate for legislative solutions that would strengthen and protect your Social Security and Medicare benefits. For updates, follow us on Twitter or visit the Legislative News section of our website every Friday morning..The tax cut, which reduced the Social Security payroll tax for employees from 6.2 percent to 4.2 percent, makes the Social Security trust funds reliant on general revenues and undermines the self-funding nature of the program. Social Security is funded by payroll taxes, and currently faces a billion cash-flow deficit. Extending the tax cut could exacerbate the program's funding issues.