According to The Hill, liberal Democratic senators are
pleading with President Obama to abandon his proposal to trim Social Security
benefits before the plan becomes a liability for them in the upcoming midterm
elections.
In order to establish a bipartisan tone of compromise, the president has proposed a
more realistic formula for calculating benefits in his next budget.
pleading with President Obama to abandon his proposal to trim Social Security
benefits before the plan becomes a liability for them in the upcoming midterm
elections.
In order to establish a bipartisan tone of compromise, the president has proposed a
more realistic formula for calculating benefits in his next budget.
But some Democratic lawmakers say Obama should shelve the
idea now that they are facing a difficult November election where they need to
turn out the liberal base to preserve their Senate majority, The Hill is reporting.
idea now that they are facing a difficult November election where they need to
turn out the liberal base to preserve their Senate majority, The Hill is reporting.
Obama proposed nearly $1 trillion in spending cuts in his budget, including a
switch to the so-called “chained CPI” (Consumer Price Index), which offers a
more realistic measurement of inflation experienced by elderly households.
switch to the so-called “chained CPI” (Consumer Price Index), which offers a
more realistic measurement of inflation experienced by elderly households.
Liberals estimate that chained CPI could cost seniors
thousands of dollars in benefits over their lifetimes.
thousands of dollars in benefits over their lifetimes.
Led by Bernie Sanders, an independent senator from Vermont, they also complain
that the president’s gesture sparked no give-and-take with Republicans on raising
revenue.
Obama said he made the proposal to get Republicans to the negotiating table,
but the move rankled Democrats on both sides of the Capitol, according to The
Hill’s Alexander Bolton.
that the president’s gesture sparked no give-and-take with Republicans on raising
revenue.
Obama said he made the proposal to get Republicans to the negotiating table,
but the move rankled Democrats on both sides of the Capitol, according to The
Hill’s Alexander Bolton.
One of the few moderate Democrats remaining in the Senate, Mark Warner of
Virginia, said that he is still hopeful of a broader deal to reduce the
deficit. Facing a tough re-election campaign in the fall, Warner, the former
Virginia governor, said Democrats should keep chained CPI on the table if they
expect Republicans to compromise on taxes.
According to the Concord Coalition, a centrist group dedicated to reducing
deficits and debt, chained CPI would help gradually reduce federal deficits and
it’s part of a balanced approach to fiscal reform, with both spending
reductions and increased revenues.
Virginia, said that he is still hopeful of a broader deal to reduce the
deficit. Facing a tough re-election campaign in the fall, Warner, the former
Virginia governor, said Democrats should keep chained CPI on the table if they
expect Republicans to compromise on taxes.
According to the Concord Coalition, a centrist group dedicated to reducing
deficits and debt, chained CPI would help gradually reduce federal deficits and
it’s part of a balanced approach to fiscal reform, with both spending
reductions and increased revenues.
To Obama’s credit, the Concord Coalition said on its
website, his proposed budget for Fiscal 2014 would switch to the chained CPI
for Social Security and some other spending programs as well as for the tax
system.
website, his proposed budget for Fiscal 2014 would switch to the chained CPI
for Social Security and some other spending programs as well as for the tax
system.
The coalition reports that Ed Lorenzen, executive
director of The Moment of Truth Project for greater fiscal responsibility, is
emphatic in explaining the merits of the chained CPI. He said the index,
created in 2002, “enjoys broad support from experts across the political and
ideological spectrum who agree that it is the best available measure for
overall changes in the cost of living.”
director of The Moment of Truth Project for greater fiscal responsibility, is
emphatic in explaining the merits of the chained CPI. He said the index,
created in 2002, “enjoys broad support from experts across the political and
ideological spectrum who agree that it is the best available measure for
overall changes in the cost of living.”
Every serious bipartisan budget plan, Lorenzen noted, has
included use of the chained CPI. He said it enjoyed very strong support on the
Simpson-Bowles fiscal commission.
included use of the chained CPI. He said it enjoyed very strong support on the
Simpson-Bowles fiscal commission.
“Addressing our fiscal challenges will require many tough
choices and policies, but adopting the chained CPI represents neither,” he
said.
choices and policies, but adopting the chained CPI represents neither,” he
said.
