Small but important victory: White House officials revealed yesterday that President Barack Obama’s proposed budget for the 2015 fiscal year will not include Social Security cuts he proposed last year. The president had hoped Congressional Republicans would agree to small tax increases in exchange for using the “chained Consumer Price Index” to calculate annual cost of living adjustments for Social Security recipients. It’s a terrible idea that never should have emerged from a Democratic administration.
Maybe Obama recognized that in an election year, he was never going to get any real Republican concession in exchange for cuts that would inflict real pain on seniors who rely on Social Security. Democrats may need to fight this battle again before the end of Obama’s presidency, though.
[White House] Spokesman Josh Earnest said the decision to move away from chained CPI was motivated partially by the “substantial progress in reducing the deficit.” […]
Earnest repeatedly insisted that Obama would still consider chained CPI as part of a grand bargain on the debt, and that the move “does not reflect any reduction in the president’s willingness to try to meet Republicans in the middle.”
For now, Congressional Democrats are celebrating. Senators including Iowa’s Tom Harkin had strongly urged the president to abandon the “chained CPI” proposal. More than 100 House Democrats, including Iowa’s Bruce Braley (IA-01) and Dave Loebsack (IA-02), sent a similar letter to Obama this week. After the jump I’ve posted press releases from Harkin and Braley about the issue. UPDATE: Added a comment from Loebsack below.
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