Obama to Offer Budget Cuts in Latest Deal, Official Says

obama budget deal social security cuts deficit reduction
Susan Walsh/AP
By Mark Felsenthal

WASHINGTON -- U.S. President Barack Obama will offer cuts to Social Security and other entitlement programs in a budget proposal aimed at swaying Republicans to compromise on a deficit-reduction deal, a senior administration official said on Friday.

Under a proposal that would cut the deficit by $1.8 trillion over 10 years, the president will offer to apply a less generous measure of inflation to calculate cost-of-living increases, the official said on condition of anonymity. That change would result in lower payments to some beneficiaries of the Social Security program for retirees and is staunchly opposed by many congressional Democrats as well as labor and retiree groups.

Obama would agree to cuts to other so-called entitlement programs, the official said.

However, the president will only accept these spending cuts if congressional Republicans, for their part, agree to higher taxes, the official added. The president's budget proposal is due to be laid out in full on Wednesday.

The president's renewed offer of fiscal negotiations with congressional Republicans follows a series of bitter battles over taxes and spending that date back to 2011. Obama is eager to put the issue of deficit reduction behind him and move on to other priorities, which include immigration and gun control legislation.

"This isn't about political horse trading," the official said. "It's about reducing the deficit in a balanced way that economists say is best for the economy and job creation."

Still, several attempts to reach an agreement balancing spending cuts with tax increases have failed, and prospects for a deal remain doubtful. House Speaker John Boehner, who let taxes rise for the wealthiest Americans earlier this year, has said any further revenue increases are off the table.


The president also wants to undo at least some of the $85 billion in across-the-board spending cuts that went into effect last month through the process known as sequestration.

Obama's budget for the fiscal year that starts Oct. 1 will contain a proposal to expand access to early childhood education, the official said. That program will be paid for by increases in tobacco taxes, the official added.

In addition, the president will seek to increase revenues by placing a $3 million upper limit on tax-preferred retirement accounts and by barring people from collecting disability benefits and unemployment insurance at the same time, the official said.

Analysts who have seen early drafts of the budget proposal say the president was considering cuts to Medicare through reducing payments to health care providers but also by requiring wealthier beneficiaries to pay more out of pocket.

Reductions to Social Security and Medicare benefits are highly unpopular among many of the president's strongest supporters and groups have already mobilized to oppose them.


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janeswizzle

Hey Mr. Obama, how about cutting aid to the foreign countries that want us dead, or do you have ties to them somehow ?Caring Americans would love to know. Certainly with all those billions you give them you could help pay back the Social Security fund that you and your predecessors stole from. Your thoughts.

April 09 2013 at 1:37 PM Report abuse rate up rate down Reply
ssi1024

I paid into SS, how can anyone reduce what was agreed to, when I started working? I paid my employer paid and the Government stole part of it.

April 08 2013 at 1:01 PM Report abuse rate up rate down Reply
1 reply to ssi1024's comment
setanta995

who AGREED TO WHAT ???? and who ever told you you get what you paid into it ??
they're simply getting ready for when the entire ponzi scam GOES BUST.

April 09 2013 at 10:35 PM Report abuse rate up rate down Reply
victruseli

lately in these times of wealthy corporations. we are suppose to succumb to oh lets cut social security and medicare and veterans benefits and if one is wealthy they are okay but if one is elderly, a vet, or has to depend on govt. support for health care we are a sorry lot. then cut the congress and their sorry lot of health care from the federal govt. tired of wealthy people saying welcome to reality to the poor......baa humbug

April 08 2013 at 6:03 AM Report abuse rate up rate down Reply
ctjhowie

Our Government keeps cutting SS by figuring a different way to calculate inflation. I wonder how much one would get returned to them if one looked at how much the original payout was in dollars and adjusted that amount into todays dollars?
They keep spending it and make US pay for that by getting less from "the Social Security locked box".

April 08 2013 at 5:46 AM Report abuse rate up rate down Reply
yankeedoug1121

this can't be true he said himself he would not touch medi and social s.

April 08 2013 at 5:20 AM Report abuse rate up rate down Reply
gcphotogreg1

President Obama is making his worst mistake yet. Seniors, who have paid all their lives for the unemloyed, for the military, for Medicare,(etc.) and whose cost of living keeps inevitably rising, are being treated like dogs if this happens. They deserve all the financial support they can get, not cutbacks! Any senior or any citizen who will eventually become one too, should be outraged and fight this baloney as a comple injustice. No one, the President, the Congress, or anyone else should do anything that detracts from the financial security of our Seniors. Remember, none of us would be here without them!

April 08 2013 at 4:58 AM Report abuse +4 rate up rate down Reply
1 reply to gcphotogreg1's comment
cpottger

President Obama is not making a mistake! He is doing this because he doesn't care about seniors or the citizenry at large. Social Security if managed appropriately from the beginning should be paying annuitants 3x the amount they currently receive. The Leadership of our country is a collective failure and all of them should be voted out in the next election.

April 10 2013 at 11:58 AM Report abuse rate up rate down Reply
A John Walsh Sr.

No new taxes!!! Ha! How about no more crap from the govt?

April 08 2013 at 2:46 AM Report abuse +2 rate up rate down Reply
Vincelle

Why would we want to cut Social Security? If anything, it should be increased. The President and his cabinet should take a closer look at their salaries and those of Congress and the Senate and cut some of those. If it is true that thes people will receive lifetime salaries in the 6 figure range, we really need to stop that and quickly.

April 08 2013 at 2:11 AM Report abuse +3 rate up rate down Reply
1 reply to Vincelle's comment
barr@3rivers.net

They need to figure the cost of living raise for them self also. And cut their wages they do not earn it any way. they got raises this year for doing nothing for our country.

April 08 2013 at 3:03 AM Report abuse +3 rate up rate down Reply
dennis.durham

OBAMA HAS LOST HIS DAM MIND, OH IM SORRY HE NEVER HAD ONE!

April 08 2013 at 1:20 AM Report abuse +6 rate up rate down Reply
bcheerful3

This is an outrage and just shows how DemocRATS and RepublicRATS are all in bed together! Next time America, grow half a brain and elect an independent.

April 08 2013 at 12:22 AM Report abuse rate up rate down Reply