Friday, April 5, 2013

Boehner pans Obama’s offer to trade Social Security change for tax hikes

House Speaker John Boehner preemptively rejected President Obama's call for more tax hikes Friday, after administration officials revealed the president's upcoming budget would tie tax hikes to changes in Social Security and other benefit programs. - FOX

The administration made clear that it is offering changes to Social Security and Medicare -- the two benefit programs most important to seniors -- in order to convince Republicans to accept increased revenues. The official said the plan to be unveiled next week "isn't a menu of options for them to choose from -- it's a cohesive package."

But Boehner bristled at the demand, noting that the president and his party already extracted tax increases on top earners as part of the deal to avert the fiscal crisis at the end of 2012.

"In the end, the president got his tax hikes on the wealthy with no corresponding spending cuts. At some point we need to solve our spending problem, and what the president has offered would leave us with a budget that never balances. In reality, he's moved in the wrong direction, routinely taking off the table entitlement reforms he's previously told me he could support," Boehner said.

Democrats have argued the recently enacted sequester cuts too deep, and continue to press for tax increases to help close the deficit. Many Democrats oppose any drastic changes to entitlements. The inclusion of the Social Security provision by Obama was meant as a gesture to Republicans - and one that has already drawn the ire of liberal members of Congress.

Left Furious With Obama For Backing Social Security Cuts - SAHIL KAPUR/Talking Points Memo

Liberals are mounting strong criticisms of President Obama amid news that his budget will include a Social Security benefit cut — an official endorsement of a policy compromise he’s offered Republicans for years — and warning Democrats not to dare vote to cut the cherished retirement program.

A trio of progressive advocacy groups issued scathing statements Friday in response to reports that Obama’s proposal will include a policy called “Chained CPI,” which would re-index Social Security cost of living increases to a lower rate of inflation — a benefit cut the president has included in deficit offers to Republicans since 2011.

“President Obama’s plan to cut Social Security would harm seniors who worked hard all their lives,” said MoveOn.org’s executive director Anna Galland. “That’s unconscionable. It’s even more outrageous given that Republicans in Congress aren’t even asking for this Social Security cut. This time, the drive to cut Social Security is being led by President Obama and Democrats.”

Stephanie Taylor of the Progressive Change Campaign Committee accused Obama of “proposing to steal thousands of dollars from grandparents and veterans” and threatened to subject any Democrat who votes for a Social Security benefit cut to a primary challenge.

“You can’t call yourself a Democrat and support Social Security benefit cuts,” Taylor said in a statement. “The President has no mandate to cut these benefits, and progressives will do everything possible to stop him.”