If it wasn’t already abundantly clear there is now more proof President Obama really really really wants to cut Social Security benefits for current retirees. Obama will include the chained-CPI, which is a yearly and continuously growing cut to your Social Security benefits, in his budget. From Politico:
President Barack Obama will make another run at a grand bargain by proposing significant new entitlement cuts and new tax revenues — including a new cigarette tax — in what the White House is portraying as a compromise budget to be released next week.
The most controversial element of Obama’s proposal is the inclusion of “chained CPI,” the adjustment that would over time reduce cost-of-living increases to Social Security and other federal benefit programs — effectively, a cut to Social Security benefits by tying them to inflation. He also calls for $9 billion in new tax revenue by setting limits on “tax-preferred retirement accounts for millionaires and billionaires.”
Official budgets, be they from the President or one house of Congress, are non-binding statements of principle. They are how that group wants to see the country operate in the next few years. Despite what defenders of Obama may claim this budget is in fact no different. It is not about “negotiating.”
In Obama’s ideal world old people would see their Social Security benefits cut. Even though the pension system is disappearing and the 401k system has proven to have significant issues, Obama still feels one of the biggest problems in the country he needs to address is the fact that old people have it too good.
Obama didn’t put chained-CPI in for Republicans, regardless what he may claim. While Republicans like to talk a big game on entitlements they have shown no real interest in cutting benefits for current retirees, who are the most important part of their base. They even expanded entitlements under Bush and they purposely set their Medicare plan to not affect anyone over age 55. Republicans didn’t even include chained-CPI in their House budget.
The single biggest driving force behind trying to cut your Social Security in Washington is President Obama. At every turn Obama has worked hard to keep the idea alive despite it is a horrible idea that is incredibly unpopular. This is not something Obama is being forced to accept, it is what he has been pushing for.