Official: Obama's budget proposes cuts to Social Security in attempt to compromise with GOP [View all]

[KoKo]

Source: AP/Yahoo


Official: Obama's budget proposes cuts to Social Security in attempt to compromise with GOP
Associated PressBy Jim Kuhnhenn, Associated Press | Associated Press – 17 minutes ago

WASHINGTON (AP) -- President Barack Obama's proposed budget will call for reductions in the growth of Social Security and other benefit programs by including a proposal to lower cost-of-living adjustments to government social safety net spending, a senior administration official says.

The reductions in growth of benefit programs, which would affect veterans, the poor and the older Americans, is sure to anger many Democrats. Labor groups and liberals have long been critical of Obama's offer to Boehner for including such a plan.

The proposal attempts to strike a compromise with congressional Republicans on the Fiscal 2014 budget by combining the president's demand for higher taxes with GOP insistence on reductions in entitlement programs.

The official, who spoke on a condition of anonymity to describe a budget that has yet to be released, said Obama would reduce the federal government deficit by $1.8 trillion over 10 years.

A key feature of the plan Obama is proposing for the federal budget year beginning Oct. 1 is a revised inflation adjustment called "chained CPI." This new formula would effectively curb annual annual increases in a broad swath of government programs, but would have its biggest impact on Social Security.
111403974.html

Read more: http://finance.yahoo.com/news/official-obama-proposes-cuts-social-111403974.html