[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 63 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
S. RES. 63

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 18 (legislative day, January 10), 1995

   Mr. Dorgan (for himself, Mr. Dodd, and Mr. Harkin) submitted the 
 following resolution; which was referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                               RESOLUTION


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

Whereas the Board of Governors of the Federal Reserve System has maintained that 
        the current Consumer Price Index overstates the rate of inflation by as 
        much as 50 percent;
Whereas other 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 result in both a 
        reduction in Social Security benefits and an increase in income taxes;
Whereas the Board of Governors of the Federal Reserve System estimates that a 1 
        percentage point reduction in the Consumer Price Index, effected today, 
        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 Bureau of Labor Statistics, which has responsibility for the 
        Consumer Price Index, is working to identify and correct problems with 
        the way in which the Consumer Price Index is currently calculated; 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 Senate that--
            (1) a precipitous change in the calculation of the Consumer 
        Price Index that would result in an increase in income taxes 
        and a decrease in Social Security benefits is not the 
        appropriate way to resolve this issue; and
            (2) any change in the calculation of the Consumer Price 
        Index should result from thoughtful study and analysis and 
        should be the result of a consensus reached by the experts, not 
        pressure exerted by politicians.
                                 <all>