THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Wednesday, January 15, 1997           TAG: 9701150007
SECTION: FRONT                   PAGE: A14  EDITION: FINAL 
TYPE: Letter 
                                            LENGTH:   32 lines

DON'T USE CPI TO BALANCE BUDGET

Thank you for attempting to clarify the very confusing issues raised by the recommendation of the Boskin Commission to once again revise the Consumer Price Index (``Keep politics at bay,'' editorial, Dec. 10, 1996).

I would like to add that one very important reason a new cost-of-living index is needed is that because the CPI does not include municipal, state or federal taxes; it only measures inflation in the private sector. Taxpayers live, however, in both the public and private sectors, and our cost of living is greatly affected by taxes which, after being adjusted for inflation, have risen 100 percent since 1980. In the real world, then, the Boskin Commission's report notwithstanding, the CPI understates the cost of living.

Moreover, as important as it is to reduce the federal government's current deficit and its debt, it is even more important to do so directly by curtailing spending, including ``entitlements,'' and/ or raising taxes after full and candid debate. To continue the federal government's long history of dealing with these matters in indirect and disingenuous ways will only further increase distrust of government.

This problem will not be solved by waiting for messiahs in the form of selfless politicians and bureaucrats. An informed citizenry willing to participate in the electoral process and to hold governments accountable on a daily basis by taking the time to inform themselves and make their views known to their representatives offers more realistic hope.

STUART ASHMAN

Virginia Beach, Jan. 4, 1997