In a continuing effort to reach consensus on a way to reduce the federal deficit, President Obama has come up with a set of proposals that has managed to annoy both sides of the aisle. His budget, to be released next week, includes cuts to Medicare and Social Security achieved by lowering the cost-of-living adjustment – so-called “chained CPI” – along with revenue increases to come via changes in the tax code aimed at the wealthiest Americans.
Not surprisingly, GOP leaders have rejected the tax hike plank. And Democrats are equally vocal in objecting to entitlement cuts, including a change in the consumer price index. The result of that change would be to shave a small amount off the checks of veterans, seniors and other groups, resulting in an estimated $390 billion in savings over the next 10 years.
The presidential budget is non-binding and is largely seen as symbolic, leading Hill-watchers to speculate that this proposal is an opening gambit on Obama’ part, a sign that he’s willing to take on any and all sacred cows for the sake of budget consensus. Does the president have any chance of having his budget pass?
David Mark, Editor-in-Chief of Politix, former Senior Editor of Politico.com