[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 45 Introduced in House (IH)]







104th CONGRESS
  1st Session
H. RES. 45

To express the sense of the House regarding calculation of the Consumer 
                              Price Index.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 1995

Mr. Brown of Ohio (for himself, Mr. Borski, Mr. Doyle, Mr. McHale, Mr. 
 Engel, Ms. DeLauro, Mr. Hinchey, Mr. Becerra, Mr. McDermott, and Mrs. 
 Lowey) submitted the following resolution; which was referred to the 
          Committee on Economic and Educational Opportunities

_______________________________________________________________________

                               RESOLUTION


 
To express the sense of the House regarding calculation of the Consumer 
                              Price Index.

Whereas expert opinions on the accuracy of the Consumer Price Index range from 
        those indicating a modest overstatement of the rate of inflation to 
        those indicating the possibility of an understatement of the rate of 
        inflation;
Whereas several leaders in the Congress have called for an immediate change in 
        the way in which the Consumer Price Index is calculated;
Whereas changing the Consumer Price Index in the manner recommended by the Board 
        of Governors of the Federal Reserve System would have the effects of 
        cutting Social Security benefit to 42 million senior citizens by $21.4 
        billion and raising taxes on 114 million families by $21.4 billion;
Whereas the Board of Governors of the Federal Reserve System estimates that a 1 
        percentage point reduction in the Consumer Price Index would generate 
        $150,000,000,000 in revenue over the next 5 years, including 
        $55,000,000,000 generated during the year 2000 alone;
Whereas the Board of Governors of the Federal Reserve System estimates that, of 
        the $55,000,000,000 in revenue estimated to be generated during the year 
        2000, $27,500,000,000 would result from a reduction in Social Security 
        benefits and $21,400,000,000 would result from an increase in personal 
        income taxes, which would primarily impact families with children;
Whereas the Consumer Price Index, as a measure of inflation, has an influence on 
        decisions to change interest rates and, therefore, must be based on 
        accurate information;
Whereas the Consumer Price Index effects industries and businesses as it is used 
        to adjust private sector wages, rents and business contracts;
Whereas the Bureau of Labor Statistics, which has the responsibility for 
        correcting problems with the way in which the Consumer Price Index is 
        currently calculated and is currently working to make the index more 
        accurate; and
Whereas calculation of the Consumer Price Index should be based on sound 
        economic principles and not on political pressure: Now, therefore, be it
    Resolved, That it is the sense of the House that--
            (1) Congressional hearings should be convened at the 
        earliest date to fully review the Consumer Price Index's impact 
        on Federal spending, Social Security benefits, taxes, interest 
        rates, business and industry, and the economy;
            (2) any change in the calculation of the Consumer Price 
        Index should result from thoughtful bi-partisan study and 
        analysis and should be the result of a consensus reached by the 
        experts from the private and public sector, not pressure 
        exerted by politicians; and
            (3) any change in the calculation of the Consumer Price 
        Index which has the effect of raising taxes must be subject to 
        a three-fifths vote of approval, pursuant to House rules.
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