Obama to shield Social Security in deficit-reduction...

[Modern_Matthew]

President Barack Obama will shield Social Security from cuts in his new deficit-reduction plan, pulling back on a key concession from his failed “grand bargain” negotiations with House Speaker John Boehner, according to officials familiar with the White House deliberations.

Read more: http://www.politico.com/news/stories/0911/63589.html#ixzz1Y2RrZdMP

[tblue]

1. Please, sir,

mean it.

[DJ13]

2. Good, but can he say the same for the new catfood commission?

Will he swear he wont sign their bill if it includes anything relating to Social Security?

[madfloridian]

3. Will he keep on pushing the payroll tax cuts?

Those cuts hurt the funding source for Social Security.

Besides:

Cuts to Medicare have already begun.

"The last few months have been a wild ride on multiple financial levels. This include wild financial consequences at the micro level (e.g., putting gas in your tank and buying milk) and at the macro level (e.g., future funding of Social Security, Medicare, Medicaid and the very real "debt crisis"). While many more challenges lie ahead in terms of budget cuts, some cuts already have been made... albeit under the radar screen.

Several of the budget cuts you should know about actually go into effect this fall, as reported in a recent SmartMoney article. According to SmartMoney, nursing home residents could face higher costs or reduced care once these cuts kick in. Yikes!

On July 29, The Centers for Medicare and Medicaid Services (CMS) decided and announced that they would be compensating for last year's $4 billion shortfall by cutting reimbursement rates to nursing homes by 11.1%. In real terms, the shortfall will reduce government reimbursements to nursing homes. In 2010, nursing homes across the board increased charges on residents by an average of 5%."


And there are a lot of negative aspects to the payroll tax cuts.

"The 2% cut in taxes masquerades as a tool to stimulate spending and create jobs. But as Marc Pascal points out on “The Moderate Voice”: “Cutting the payroll tax for social security is not a viable economic stimulus measure and it will not create any new jobs. It merely underfunds the program so Republicans can gut it later because it isn’t paying for itself.”

[Name removed]

4. Deleted message

Message removed by moderator. Click here to review the message board rules.

[MineralMan]

5. Wait...I thought he'd already decided to cut Social Security.

I mean, I've read that here many times. :sarcasm:

[madfloridian]

6. He already is cutting SS

More on the negative effects of the payroll tax cuts

"The 2% cut in taxes masquerades as a tool to stimulate spending and create jobs. But as Marc Pascal points out on “The Moderate Voice”: “Cutting the payroll tax for social security is not a viable economic stimulus measure and it will not create any new jobs. It merely underfunds the program so Republicans can gut it later because it isn’t paying for itself.”

More:

"The White House maintains that the $120 billion lost to Social Security's trust fund will be paid back by a transfer of general tax revenue, "ensuring no negative impact on Social Security solvency."

But clearly there will be new pressure on the available pool of general tax revenue, unless the $120 billion generates so many new jobs so fast that an army of newly employed workers fills the coffers of the Internal Revenue Service with unanticipated tax revenue. No one expects that to happen, at least not quickly. So the government would have to borrow to make Social Security whole. That, in turn, would make the short-term deficit worse. So Congress might not vote to replenish the trust fund."

More:

""Given that the present Congress is unwilling to roll back the Bush tax cuts and raise even a nickel in additional taxes from millionaires," she says, "it's hard to believe that a more conservative Congress, in an election year, will increase the payroll tax from 4.2 to 6.2 percent — a 30 percent increase — on the very first dollar earned by virtually every single worker in the country." She thinks the cut could well become permanent.

If that happens, Social Security’s long-term shortfall could double over 75 years, she says, and political pressure to downsize the program could mount. That could lead to converting Social Security from a universal insurance program to a welfare program, with the numerous drawbacks of programs for the poor, including low public support. If this scenario unfolds, says Altman, "it's good-bye, Social Security."

[RC]

13. Maybe someone explained to him the connection between Social Security and the third rail

he was tap dancing on?

[Romulox]

7. "good cop/bad cop" nt

[rfranklin]

8. Good news if true...but it is Politico using anonymous sources...

and then we know how steely President Obama is when it comes to accepting the Republicans blackmail.

[MineralMan]

9. I guess anonymous sources are only OK if they're negative

about President Obama. That sure seems to be the case around here.

[jtown1123]

15. So Washington POst and WSJ aren't reliable either then?

Obama Plan Won't Include Changes to Social Security-WALL STREET JOURNAL. President Barack Obama's new deficit-reduction proposal will leave out changes to Social Security, and may exclude any increase in the Medicare eligibility age, people familiar with the discussions said Wednesday. President Obama is considering a deficit reduction proposal that leaves out two of the most controversial measures he has put forth before, one affecting Social Security and the other Medicare. Laura Meckler has details on The News Hub. http://online.wsj.com/article/SB10001424053111904491704576571154004082570.html#printMode

Obama unlikely to put Social Security cuts back on the table, sources say-WASHINGTON POST. The last time President Obama negotiated with Republicans about overhauling the nation’s social safety set, he put several significant and politically explosive proposals on the table. This time, it may be different. As Obama prepares to present Congress on Monday with a detailed plan for taming the nation’s debt, a pivotal question is whether he will again propose raising the Medicare eligibility age from 65 to 67 and propose cuts in Social Security benefits. http://www.washingtonpost.com/business/economy/obama-unlikely-to-put-social-security-cuts-back-on-the-table-sources-say/2011/09/14/gIQAsW9LTK_print.html

[onpatrol98]

10. What I've noticed over the past several years...

I've noticed that politicians cover for each other. You hear it a lot in interviews. For instance, one politician has to look tough for his constituents, so as long as it doesn't hurt a bill or something, they let him do all the tough talk he wants...the guy votes No, and looks like a big shot...but then later, you hear the same thing is being done by a committee, or that the politicians knew they had the votes anyway.

I'm not sure the President would do that. But, there was plenty of that going on during the health care debate. You would hear pundits saying...well, Pelosi knows that "what's her face from Arkansas" can't vote for this, so she'll get a pass. They'll lean on some of the others democrats for this bill or that one.

I think these people have a whole new set of rules that they use AFTER you vote for them. It's all smoke and mirrors.

[Auntie Bush]

11. He'd better! Too many people couldn't make it if it were cut !

[librechik]

12. big thumbs up. Mr. President!

now walk back the idea that deficits are more important than unemployment. Your bad.

Pivot!

[jtown1123]

14. Don;'t forget he was the one who offered up cuts during the debt deal. Nothing is sacred.