Obama Proposes Cuts to Social Security and Medicare In Deficit Reduction Deal

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Wed Jul-06-11 10:19 PM
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Obama Proposes Cuts to Social Security and Medicare In Deficit Reduction Deal

Edited on Wed Jul-06-11 10:30 PM by Better Believe It

Obama proposes cuts to Social Security and Medicare
by Joe Sudbay
July 6, 2011

Unfortunately, I doubt anyone is going to be surprised by this development. Deeply disappointed, yes. Amazing frustrated, yes. Beyond annoyed, yes. And, wondering what the hell they're thinking at the White House, definitely.

Maybe the President has been negotiating with himself for so long that he's lost all perspective. In exchange for what might possibly be some minor tax revenue increases, the President is giving GOPers what they couldn't get from George Bush, a GOP-controlled House and a GOP-led Senate. Yes, from Obama, Republicans are getting what they've always wanted. Lori Montgomery at the Washington Post broke the story:

“Obviously, there will be some Democrats who don’t believe we need to do entitlement reform. But there seems to be some hunger to do something of some significance,” said a Democratic official familiar with the administration’s thinking. “These moments come along at most once a decade. And it would be a real mistake if we let it pass us by.”

That "hunger to do something of some significance" is fed by the GOPers and the DC pundits. The White House bought it. They're selling out on core Democratic priniciples. For what?

Read the full article at:

http://www.americablog.com/2011/07/obama-will-offer-gop-cuts-to-social.html

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Obama Seeking Social Security Cuts In Deficit Reduction Deal
By Zeke Miller
July 6, 2011

President Barack Obama is raising the stakes in the ongoing talks to raise the debt ceiling and lower the deficit — proposing $4 trillion in cuts over the next decade, including reductions to Social Security, The Washington Post is reporting.

Obama has already indicated he would support cuts to the "delivery-side" of Medicare and Medicaid as long as Republicans agree to new revenues, but including Social Security in the deal will be tough for many Democrats to stomach.

Realizing there is a broad public consensus to "do it big," Obama is going beyond the $2.4 trillion in cuts previously discussed as part of a deal to raise the debt limit.

More Republicans are coming around to agreeing to revenue increases as part of a deal — though they said they will not agree to new taxes.

Read the full article at:

http://www.businessinsider.com/white-house-seeking-social-security-cuts-in-deficit-reduction-deal-2011-7

In debt talks, Obama offers Social Security cuts
By Lori Montgomery
July 6, 2011

President Obama is pressing congressional leaders to consider a far-reaching debt-reduction plan that would force Democrats to accept major changes to Social Security and Medicare in exchange for Republican support for fresh tax revenue.

As part of his pitch, Obama is proposing significant reductions in Medicare spending and for the first time is offering to tackle the rising cost of Social Security, according to people in both parties with knowledge of the proposal. The move marks a major shift for the White House and could present a direct challenge to Democratic lawmakers who have vowed to protect health and retirement benefits from the assault on government spending.

Rather than roughly $2 trillion in savings, he White House is now seeking a plan that would slash more than $4 trillion from annual budget deficits over the next decade, stabilize borrowing, and defuse the biggest budgetary time bombs that are set to explode as the cost of health care rises and the nation’s population ages.

Privately, some congressional Democrats were alarmed by the president’s proposal, which would adjust a formula that uses inflation to determine Social Security payouts. But others described it as primarily a bargaining strategy intended to demonstrate Obama’s willingness to compromise and highlight the Republican refusal to raise taxes.

Read the full article at:

http://www.washingtonpost.com/business/economy/in-debt-talks-obama-offers-social-security-cuts/2011/07/06/gIQA2sFO1H_story.html