"The Social Security Benefit Cut Obama May Agree To" (Chained CPI)
The Social Security Benefit Cut Obama May Agree To (Chained CPI)
Brian Beutler December 18, 2012, 5:46 AM
But Obama allies and and some liberal economists have identified it as the least-bad entitlement benefit cut and have given it their blessing provided it’s one piece of a broader, balanced debt reduction plan, and includes protections for poorer seniors. Though the Congressional Budget Office has cautioned that indexing Social Security to chained CPI would be technically complicated, the liberal Center on Budget and Policy Priorities backed it under those circumstances. So did the progressive Center for American Progress, which has close ties to the White House.
Progressive activists and members of Congress have taken a hard line against cutting Social Security benefits (or any major social insurance program benefits) in fiscal cliff negotiations. But as Obama and Boehner zeroed in on a deal, some are asking whether it would be an acceptable concession if Obama walks away with higher taxes on the wealthy and some new stimulus next year.
“Is this rumored deal better than no deal?” asked Paul Krugman, articulating the internal conflict liberal Democrats will grapple with if the deal takes shape. “I’m on the edge. It’s not clear that going over the cliff would yield something better; on the other hand, those benefit cuts are really bad, and you hate to see a Democratic president lending his name to something like that. There is a case for refusing to make this deal, and hoping for a popular backlash against the GOP that transforms the whole debate; but there’s also an argument that this might not work.
If Boehner can hold his conference, Krugman says, “there will be some serious agonizing for progressives, yours truly included.”
More at.......
http://tpmdc.talkingpointsmemo.com/2012/12/social-security-obama-boehner-chained-cpi.php?ref=fpb
