# Congress Uses One Inflation Measure for Taxes, Another for Benefits | Cato Analysis 

October 19, 2026 • News Releases 

In [**new analysis**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fblog*2Fcongress-uses-outdated-inflation-measures-welfare-spending/1/010001a154e92b02-0e8a2680-d568-4aa1-a4e0-a35368178f55-000000/Pg_fbG9jDnjzpTiNECNHMut5W_E=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjYxZDkwNjJjOGNlYjU0MWJjOWYzMzFiNzNiNTUwNTczOjc6YzAyMzo4Y2ExZWI4YTI1MzViODJmNjdjMTAwNmJiNDY0YTcyYzk4ZDEwYmJjYTFlZDUwN2Y2OGZlOTBlZjQ2OTMyYTM2Omg6VDpO), the Cato Institute’s [**Romina Boccia**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fpeople*2Fromina-boccia/1/010001a154e92b02-0e8a2680-d568-4aa1-a4e0-a35368178f55-000000/G6W2HY919zdhOAqhhBVzk5WAl8w=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjYxZDkwNjJjOGNlYjU0MWJjOWYzMzFiNzNiNTUwNTczOjc6MWI2ZDo4YmFkZDIxZDFlMTMzNGVhNmFhZTMxOWJmNzViNDJlMDgyMzIxZGI4MDVlMWNmMThkY2QyOTZmMzU1ZWQ3YjZmOmg6VDpO) and **Tyler Turman** argue that Congress applies a double standard to inflation adjustments, using a more accurate measure for taxpayers’ income brackets while relying on outdated measures that increase federal benefit spending.

The authors highlight several findings:

- **Congress applies a double standard:** The 2017 tax law adopted chained CPI for income-tax brackets, increasing federal revenues relative to the previous formula. Meanwhile, Social Security and other benefit programs continue using older inflation measures that overstate increases in the cost of living.
- **The costs are substantial:** Switching Social Security to chained CPI could save $188 billion over the next decade, while similar changes to other benefit programs could save more than $90 billion.
- **A more accurate alternative exists:** Chained CPI better accounts for how consumers adjust their spending as prices change, providing a more accurate measure for adjusting benefits and eligibility thresholds.

With Congress considering another reconciliation bill during the upcoming lame-duck session, Boccia and Turman urge lawmakers to adopt chained CPI for other inflation-adjusted benefit programs. They also support reforming Social Security’s inflation formula, though budget rules prohibit doing so through reconciliation.

If you’re interested in speaking with Romina about Congress’s [**inflation double standard**](https://url.avanan.click/v2/r01/___https://zwly9k6z.r.us-east-1.awstrack.me/L0/https:*2F*2Fwww.cato.org*2Fblog*2Fcongress-uses-outdated-inflation-measures-welfare-spending/2/010001a154e92b02-0e8a2680-d568-4aa1-a4e0-a35368178f55-000000/5x_AiB2bRs5xRvDz2HMoirfSC28=473___.YXAzOmNhdG9pbnN0aXR1dGU6YTpvOjYxZDkwNjJjOGNlYjU0MWJjOWYzMzFiNzNiNTUwNTczOjc6NTkwODplOTI4OTMyYjNjNTE5MmU3OTczYThmMmFmZDI5ODI2NjA2MTY5NDRjOTg3NTk0MzI3M2VhNTgwOGFjZDEwNDE4Omg6VDpO), its fiscal implications, or potential reforms, I’m happy to connect you.

Best,

Ryan Carver 
***Media Relations Manager*** 
*540–589‑0573* 
Cato Institute 
1000 Massachusetts Avenue, N.W. 
Washington, DC 20001

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