Sunday, January 25, 2015
YOLO COUNTY NEWS
99 CENTS

Obama proposes cuts to Social Security

By
From page A2 | April 05, 2013 |

WASHINGTON (AP) — President Barack Obama’s proposed budget will call for reductions in the growth of Social Security and other benefit programs while still insisting on more taxes from the wealthy in a renewed attempt to strike a broad deficit-cutting deal with Republicans, a senior administration official says.

The proposal aims for a compromise on the Fiscal 2014 budget by combining the president’s demand for higher taxes with GOP insistence on reductions in entitlement programs.

The official, who spoke on a condition of anonymity to describe a budget that has yet to be released, said Obama would reduce the federal government deficit by $1.8 trillion over 10 years. The president’s budget, the first of his second term, incorporates elements from his last offer to House Speaker John Boehner in December. Congressional Republicans rejected that proposal because of its demand for more than a $1 trillion in tax revenue.

A key feature of the plan Obama now is submitting for the federal budget year beginning Oct. 1 is a revised inflation adjustment called “chained CPI.” This new formula would effectively curb annual increases in a broad swath of government programs, but would have its biggest impact on Social Security. By encompassing Obama’s offer to Boehner, R-Ohio, the plan will also include reductions in Medicare spending, much of it by targeting payments to health care providers and drug companies.

Obama’s budget proposal also calls for additional tax revenue, including a proposal to place limits on tax-preferred retirement accounts for wealthy taxpayers. Obama has also called for limits on tax deductions by the wealthy, a proposal that could generate about $580 billion in revenue over 10 years.

The inflation adjustment would reduce federal spending over 10 years by about $130 billion, according to past White House estimates. Because it also affects how tax brackets are adjusted, it would also generate about $100 billion in higher taxes and affect even middle income taxpayers.

The reductions in the growth of benefit programs, which would affect veterans, the poor and the older Americans, is sure to anger many Democrats. Labor groups and liberals have long been critical of Obama’s offer to Boehner for including such a plan.

Administration officials have said Obama would only agree to the reductions in benefit programs if they are accompanied by increases in revenue, a difficult demand given the strong anti-tax sentiment of House Republicans.

That Obama would include such a plan in his budget is hardly surprising. White House aides have said for weeks that the president’s offer to Boehner in December remained on the table. Not including it in the budget would have constituted a remarkable retreat from his bargaining position.

Obama’s budget, to be released next Wednesday, comes after the Republican-controlled House and the Democratic-run Senate passed separate and markedly different budget proposals. House Republicans achieved long-term deficit reductions by targeting safety net programs; Democrats instead protected those programs and called for $1 trillion in tax increases.

But Obama has been making a concerted effort to win Republican support, especially in the Senate. He has even scheduled a dinner with Republican lawmakers on the evening that his budget is released next week.

House Republicans, however, have been adamant in their opposition to increases in taxes, noting that Congress already increased taxes on the wealthy in the first days of January to avoid a so-called fiscal cliff, or automatic, across the board tax increases and spending cuts.

Congress and the administration have already secured $2.5 trillion in deficit reduction over the next 10 years through budget reductions and with the end-of-year tax increase on the rich. Obama’s plan would bring that total to $4.3 trillion over 10 years.

As described by the administration official, the budget proposal would also end a loophole that permits people to obtain unemployment insurance and disability benefits at the same time.

Obama’s proposal, however, includes calls for increased spending. It would make pre-school available to more children by increasing the tax on tobacco.

————

By Jim Kuhnhenn

Comments

comments

The Associated Press

.

News

Bridges of Yolo County: Wear, tear … repair?

By Elizabeth Case | From Page: A1 | Gallery

 
Four days of unusual, adventuresome music

By Jeff Hudson | From Page: A1 | Gallery

 
Spanish police arrest 4 suspected members of a jihadi cell

By The Associated Press | From Page: A2

Rockets kill 30 in Ukrainian city as rebels launch offensive

By The Associated Press | From Page: A2

 
Abe ‘speechless’ after video claims IS hostage dead

By The Associated Press | From Page: A2

GOP presses state bills limiting gay rights before ruling

By The Associated Press | From Page: A2

 
Abortion opponents express renewed hope at California rally

By The Associated Press | From Page: A2

Share your love (story) with us

By Enterprise staff | From Page: A3

 
Sip wines at St. James’ annual tasting

By Special to The Enterprise | From Page: A3

Fake schools draw federal scrutiny

By The Associated Press | From Page: A3 | Gallery

 
Winter produce available at Sutter market

By Special to The Enterprise | From Page: A3

Vote for your favorites in Readers’ Choice poll

By Enterprise staff | From Page: A3

 
Donations to be distributed during homeless count

By Anne Ternus-Bellamy | From Page: A4

 
Speaker will share computer security tips

By Enterprise staff | From Page: A4

Logos Books celebrates 5 years, offers language groups

By Enterprise staff | From Page: A4

 
Australian olive oil company opens U.S. headquarters in Woodland

By Special to The Enterprise | From Page: A4

Explore at the YOLO Outdoor Expo

By Enterprise staff | From Page: A4

 
Pedal around Davis on weekly bike ride

By Enterprise staff | From Page: A4

 
Yolo animal shelter seeking rawhide donations

By Lauren Keene | From Page: A5

Woodland Healthcare employees take Great Kindness Challenge

By Special to The Enterprise | From Page: A5

 
At the Pond: Nest boxes give birds new homes

By Jean Jackman | From Page: A6 | Gallery

California ranks worst in nation for guidance counselors

By The Associated Press | From Page: A7

 
Davis, Woodland are saving water

By Elizabeth Case | From Page: A12

Words and Music Festival events

By Jeff Hudson | From Page: A12

 
.

Forum

Family isn’t keen on relationship

By Creators Syndicate | From Page: A8

 
 
Caring for the aging mouth

By Samer Alassaad | From Page: A8

Big utilities’ nightmare begins to play out

By Tom Elias | From Page: A10

 
Mayor’s Corner: Let’s renew Davis together

By Dan Wolk | From Page: A10

We have the right to choose

By Letters to the Editor | From Page: A10

 
We don’t have to suffer

By Letters to the Editor | From Page: A10

City helped immensely

By Letters to the Editor | From Page: A10

 
Rick McKee cartoon

By Debbie Davis | From Page: A10

When measles spreads from Disneyland, it’s a small world after all

By New York Times News Service | From Page: A11

 
From innovation parks to innovative buildings and planning

By Special to The Enterprise | From Page: A11

.

Sports

Wildcats’ inaugural kids development league exceeds expectations

By Bruce Gallaudet | From Page: B1 | Gallery

 
Aggies get top 2015 gymnastics score, but fall short

By Bruce Gallaudet | From Page: B1 | Gallery

Loud crowd sees DHS boys win

By Spencer Ault | From Page: B1 | Gallery

 
Lady Devils hold off Pacers, stay perfect in league

By Enterprise staff | From Page: B1

UCD men take two tennis matches

By Enterprise staff | From Page: B8

 
Watney in ninth at Humana Challenge

By Staff and wire reports | From Page: B8

.

Features

.

Arts

.

Business

Davis man focusing on cannabidiol business

By Will Bellamy | From Page: A9

 
Marrone Bio’s Regalia approved for new uses in Canada

By Special to The Enterprise | From Page: A9

 
UCD grad makes insurance ‘hot 100′ list

By Enterprise staff | From Page: A9

Yolo County real estate sales

By Zoe Juanitas | From Page: A9

 
.

Obituaries

.

Comics

Comics: Sunday, January 25, 2015

By Creator | From Page: B8