View Full Version : Obama proposes cuts to Social Security

07-07-2011, 10:14 AM
July 7, 2011 7:32 AM

Obama proposes cuts to Social Security

Corbett B. Daly

President Obama has said he wants to use a looming deadline over raising the amount Congress is allowed to borrow to work a deal with Republicans on something "big."

And now he plans to propose major changes to Social Security as part of that "grand bargain," which he hopes will reduce the deficit by as much as $4 trillion over the next decade, administration sources tell CBS News.

Mr. Obama is scheduled to meet at the White House Thursday morning with congressional leaders, including House Speaker John Boehner, from both parties to negotiate a deficit reduction deal.

Mr. Obama on Wednesday again warned of catastrophic consequences for the U.S. and global economy if Congress does not increase the $14.3 trillion debt ceiing by August 2.

The two sides had earlier been at impasse on plan to reduce the deficit by $2 trillion over ten years, and it remains unclear how a package twice that size will make an agreement any easier.

Mr. Obama believes that a larger deal would actually be easier to get through Congress. His thinking, administration officials say, is this: Any major deal, whether it's for $2 trillion in cuts or $4 trillion in cuts, will cause significant pain for both parties. But a larger deal allows backers to argue that despite their misgivings, they've taken a major step toward dealing with the deficit and debt problem.

The administration would only agree to cuts to Social Security benefits in exchange for reducing some eliminating some tax breaks that benefit the wealthy and certain industries, including oil and gas firms.

House Majority Leader Eric Cantor, the chamber's number two Republican, told reporters Wednesday he would be willing to eliminate some of those tax breaks if there were tax cuts in other areas that would offset them.

"If the president wants to talk loopholes, we'll be glad to talk loopholes," Cantor said Wednesday.

Senate Republicans, however, have said the loophole is too complicated to be included in part of the current negotiations and should be handled separately.

Cantor, who walked out of the talks in late June, on Thursday expressed optimism a deal could be made.

"I believe that we can come together, we can find ways to cut spending, to get our fiscal house in order, so we can begin to grow the economy again and people can get back to work," Cantor said on CBS' "The Early Show."

Cantor did not mention increasing revenues, which Democrats say is critical for a balanced approach to reducing the deficit.

The economy grew at a 1.9 percent annualized rate in the first three months of this year after growing at a 3.1 percent pace in the three months through last December.

again this jackass goes after the elderly. That isn't the part of SS that needs to be fixed, the longer they take screwing around not letting my generation and younger put our money where we want, the less likely we are to have anything.

*note: doesn't mean I don't think we should be waiting for the Gov to take care of us till then, just that the current SS is so screwed up it'll take the Country with it when all the boombers retire

07-07-2011, 11:13 AM
Read it closer fettpett. Its a giant plan to get tax increases, while placing the blame for cutting SS and Medicare squarely on the GOP going into the '12 elections.


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.

How heartless, those evil Republicans are once more throwing grandma off the cliff once again, and in order to save this nation, the Dems were strong-armed into this in order to raise taxes on the greedy rich.

At a meeting with top House and Senate leaders set for Thursday morning, Obama plans to argue that a rare consensus has emerged about the size and scope of the nation’s budget problems and that policymakers should seize the moment to take dramatic action.

Another words, Obama is trying to rush this through before the Aug. break and congress members go home to their Aug. town hall meetings and hear from those who sent them to Washington. And really hear what voters have to say.

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.

Reductions that won't be scheduled for several years later, but never take effect, but tax increases that go in effect right away.

Rather than roughly $2 trillion in savings, the 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.

Obama wants to look like he is more hawkish then the Ryan plan, so he says his plan will cut twice the amount. Thou we all know it wont. And its once again spread over "Decades" that never go into effect because we can't "Burden" a portion of the population.

And note, the rising cost of heath care is the biggest problem according to Obama. Didn't Obamacare deal with that? That Obama care was going to cut that down and prevent it from rising?

The administration argues that lawmakers would also get an important victory to sell to voters in 2012. “The fiscal good has to outweigh the pain,” said a Democratic official familiar with the discussions.

This same administration also told lawmakers that voting for Obamacare would be a great help to their re-election.

Privately, some congressional Democrats were alarmed by the president’s proposal, which could include adjusting the measure of inflation used 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.

See voters, its once more those evil Republicans who wont compromise and are protecting the corporate jet owners.

Meanwhile, another senior Republican on Wednesday signaled a new openness to raising taxes— at least for selected special interests. House Majority Leader Eric Cantor (Va.) told reporters that he is now willing to consider Democratic demands to end tax breaks for corporations, hedge-fund managers and owners of corporate jets, so long as the final deal does not raise tax rates or overall federal tax collections.

I've yet to hear of any senior Republican who said they are willing to raise taxes as being reported.

“If the president wants to talk loopholes, we’ll be glad to talk loopholes,” Cantor said at his weekly roundtable with reporters. “We’ve said all along that preferences in the code aren’t something that helps economic growth overall. But listen, we’re not for any proposal that increases taxes, and any type of discussion should be coupled with offsetting tax cuts somewhere else.” …

Oh, thats what they really said, to close existing loopholes, not raise taxes. Wonder why the liberal rages keep saying the GOP is willing to raise taxes? :rolleyes:

07-07-2011, 11:49 AM
I know thats what he's trying to do, but it also goes after the largest Republican voting block which we know he has no problem punishing.

07-07-2011, 09:37 PM
Obama wants tax increases NOW and tax cuts far, far off in the future. He will not be in office then. Plus those tax cuts are not edged in stone. They can be changed just like what the Dummiecrats are harping on now, and that is repealing the Bush tax cuts which were just extended a couple of months ago.

I look for the weak kneeded Repubs to cave on the debt celing and fall for the stupidity Obama is hawking regarding cutting social security. Boehner and the Repub old dogs are realy stupid.

The 37 billion in budget cuts last time around turned out to be a couple of hundred million after the dust settled. I can not believe how ignorant the Republican leadership is. Maybe Bonehead will cry and Obama will give him a few nickels in tax cuts. :mad:

07-07-2011, 09:41 PM
What budget are they cutting? There is no budget. Congress hasn't passed one in ages, remember?

07-07-2011, 10:07 PM
What budget are they cutting? There is no budget. Congress hasn't passed one in ages, remember?

It would be ingenious on the Repubs part to state that without a Obama/Democratic budget on the table there can be no talks on raising the debt ceiling.

07-07-2011, 10:07 PM
What budget are they cutting? There is no budget. Congress hasn't passed one in ages, remember?

Details, details.

Obama thinks that we're all stupid and will be fooled by his rhetoric. Wait, maybe the Republicans will be that stupid. I pray to God that they aren't.