Obama budget to offer program cuts, seek deficit deal - official

WASHINGTON, April 5 Fri Apr 5, 2013 1:58am EDT

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WASHINGTON, April 5 (Reuters) - U.S. President Barack Obama will offer cuts to Social Security and other entitlement programs in a budget proposal aimed at swaying Republicans to compromise on a deficit reduction deal to put the country's finances on a sounder footing, a senior administration official said on Friday.

The president will offer to apply a less generous measure of inflation to calculate cost-of-living increases, the official said on condition of anonymity. That change would result in lower payments to some beneficiaries of the Social Security program for retirees.

Obama would agree to cuts to other so-called entitlement programs, the official said.

But the president will only accept these spending cuts if congressional Republicans, for their part, agree to higher taxes, the official added. The president's budget proposal, due to be laid out in full on Wednesday, would cut the deficit by $1.8 trillion over ten years, the aide said.

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Comments (1)
toklat wrote:
I like many will be wathcing for this news. I do not think with the HOPtea Congress majority that they will as long as they have this majority vote in Congress ever pass for any new taxes on their wealthy donors. in my opnion is this is true about Obama it is a huge waste of time. To make our elderly that are not rich have to now get less Social security or Medicare benefits is a very bad plan.

Apr 05, 2013 3:22am EDT  --  Report as abuse
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