White House Deficit Talks: Will Social Security Be Affected?
Tensions flared yesterday as President Obama presented the possibility of cuts to Social Security during his deficit-reduction proposal. The President offered a plan to House and Senate leaders that will slow the ballooning cost of Social Security and reduce Medicare spending in exchange for Republican support for cuts in tax incentives.
The White House says its willing to reduce costs for major benefit programs, while the leaders are looking for a compromise package that would extend the government’s borrowing limit while also slicing trillions off future budget deficits. Democratic House Minority Leader Nancy Pelosi has promised the nation’s deficit will not be reduced on the backs of the nation’s seniors.
Republican House Speaker John A. Boehner, says deep cuts in entitlement programs are needed to bring down the deficit not tax increases.
The American Association of Retired Persons (AARP) was quick to disagree with President Obama’s decision to possibly include Social Security cuts in deficit talks.
Pamela Roshell, AARP Georgia’s Senior State Director, told us lawmakers need to take Social Security cuts off the table.
Roshell says Social Security costs are not responsible for the current $14.29 TRILLION deficit so therefore benefits should not be cut to help bring the number down.
President Obama and congressional leaders are scheduled to meet at the White House on Sunday to review various proposals. If the Administration and Congress cannot reach an agreement on the deficit by August 2, the U.S. could default of some of it’s financial obligations.