[Congressional Record Volume 143, Number 32 (Thursday, March 13, 1997)]
[Extensions of Remarks]
[Page E464]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             THE COST OF LIVING ACCOUNTABILITY ACT OF 1997

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                         HON. GERALD D. KLECZKA

                              of wisconsin

                    in the house of representatives

                        Thursday, March 13, 1997

  Mr. KLECZKA. Mr. Speaker, I rise today to address an issue that 
affects millions of Americans. As you all know, the recently released 
Boskin Commission concluded that the Consumer Price Index [CPI] 
overstates the rate of inflation by 1.1 percent. In light of this 
finding, several changes to the way in which the CPI is calculated have 
been proposed. Members of Congress, the President, and other government 
officials have different ideas on whether the Bureau of Labor 
Statistics [BLS] should continue to adjust the CPI when necessary or if 
an independent commission should make any needed changes. However, one 
element is lacking with these proposals: accountability.
  Whether we continue to have the Bureau of Labor Statistics determine 
the CPI, or pass that responsibility along to an independent 
commission, or choose another alternative, Members of Congress have a 
duty to ensure that any changes to the CPI are in the best interest of 
our citizens. We must be held to a vote on the matter.
  There are tough choices ahead in our quest to balance the budget. 
Federal benefits whose COLA's are linked to the CPI include: Social 
Security, Federal employee and military retirement, veterans pensions, 
child nutrition programs, and the Earned Income Tax Credit [EITC]. In 
addition, income tax brackets are also determined by the CPI. A quick 
fix to the problem of balancing the budget could be simply to adjust 
the rate of inflation, which would lower payments for recipients of 
benefits of all of the above programs and raise taxes. But quick fixes 
rarely solve the problem over the long run. We should not use the CPI 
as a budget balancing tool.
  The CPI is a cash cow that some Republicans are trying to use to 
achieve their budget goals. They are shopping for a commission to do 
the BLS's job, because they want the CPI decreased, and the BLS is not 
moving quickly enough for them. If the BLS was not being pressured by 
these Republicans and some in the Administration to recalculate this 
index to their specifications, this bill would not be necessary.
  The Republicans want the President to change the CPI 
administratively. They want this to be done so that when our seniors' 
Social Security COLA's are reduced, they can blame it on someone else. 
They are hiding behind someone else's decision instead of holding 
themselves accountable for these extremely difficult budget decisions 
facing this Congress.
  The BLS and its commissioner, Katharine Abraham, are moving as 
quickly as they can to examine if any changes should be made to the 
CPI. This is not an expert science, but it is the best system we have. 
The BLS economists are experts, and should be the ones to continue to 
make these important calculations.
  My legislation does not offer any particular solution to fix the CPI. 
Instead, it simply requires that any proposed changes be approved by 
the Congress. During consideration of the fiscal year 1996 Labor-HHS 
appropriations bill, I, along with Representative Barney Frank, offered 
an amendment which would protect Social Security COLA's, among other 
things, from unfair cuts by requiring Congressional approval of any 
changes in the formula used to calculate the CPI. My amendment was 
passed by the House, but later dropped in the House-Senate conference 
on the bill.
  My amendment has now been reintroduced as a free standing measure. I 
hope that all of my colleagues will join me and again decide to be held 
accountable for any changes to the many programs that are affected by 
changes in the CPI.

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