President Barack Obama has once again started his negotiations by scoring into his own net. In what may be the dumbest plan yet proposed, Obama has offered cuts to Social Security hoping for a change in the Republican’s position on tax loopholes for the wealthy.
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.
Because with poverty hitting new record levels, now is a great time to cut benefits.
The reductions in growth of benefit programs, which would affect veterans, the poor and the older Americans, is sure to anger many Democrats
Especially the ones who are not termed out like Obama and would like not to get primaried. And, brace yourself, the cuts Obama has proposed on seniors are more severe than the closed loopholes/tax increases on the wealthy. I know it’s hard to believe the man who raised a billion dollars from Corporate America would do such a thing.
President Obama’s proposal would reduce benefits by 0.3 percent for each year after a worker retires. After ten years benefits would be cut by 3.0 percent, after twenty years 6.0 percent, and after 30 years 9.0 percent. Over a twenty year retirement, the average cut would be 3.0 percent…
By comparison, Social Security is about 70 percent of the income of a typical retiree. Since President Obama’s proposal would lead to a 3 percent cut in Social Security benefits, it would reduce the income of the typical retiree by more than 2.0 percent, more than three times the size of the hit from the tax increase to the wealthy.
For even further clarification it should be noted the loopholes for the wealthy will not stay closed. The current tax system is designed for that type of gamesmanship. So what is likely to happen if Obama gets his dream deal? Social Security will be permanently cut and the rich will lose a deduction or two for a year before they get slipped back in. Exchanging temporary increases in taxes for permanent benefit cuts to those in need in an a two-tier economy is beyond cynical. If President Obama is legacy shopping, he might want to return this item.