Obama to cut Social Security and raise income taxes?

The proposal is to cut Social Security payments by adjusting for inflation using a more conservative index, a "Chained" CPI instead of the CPI...

A Chained CPI assumes that as prices increase, consumers buy lower cost alternatives, reducing the amount of inflation they experience. For example, if the price of beef increases while the price of pork does not, people will buy more pork. Or, as opponents mockingly argue, if the price of home heating oil goes up, people will turn down their heat and wear more sweaters

As the possible cuts are phased in, a typical 65-year-old who started receiving Social Security benefits at age 62 would get an annual reduction of about $130, according to an analysis of data produced by the Social Security actuaries. By the time that retiree reached 75, the annual cut would be $560. At 85, the cut would be $984 a year.

Average Social Security benefits are about $1,100 a month, or about $13,000 a year.

It is also proposed to use the Chained CPI when adjusting income tax brackets and exemptions. This is a very sneaky way to raise income tax every year, without it looking like a tax increase. And it affects low and middle income people much more than upper income.

Low-wage workers would eventually see the biggest increases, while high-income taxpayers would see only small changes. That's because the wealthiest taxpayers already pay taxes at the highest marginal rate, currently 35 percent.

For example, by 2021, taxpayers making between $10,000 and $20,000 would see a 14.5 percent increase in their income taxes with a Chained CPI, according to an analysis by the Joint Committee on Taxation. Taxpayers making more than $500,000 would get a tax increase of 0.3 percent, while those making more than $1 million would get a tax increase of 0.1 percent.

"A change to a chained CPI would place new burdens mainly on the backs of seniors, middle-income and low-income Americans," said Rep. Sander Levin, D-Mich., ranking Democrat on the House Ways and Means Committee.

http://www.myqwest.com/news/read.php?rip_id=%3CD9OB2R5G1%40news.ap.org%3E&ps=1018&page=1

Pelosi came out and said there is no way the House will support this. So he is proposing a bill that both the Dems and the Republicans are refusing to agree with.


http://www.theblaze.com/stories/nancy-p ... bt-debate/

HaHa "Chained CPI" Gotta love those Gov't guys and their new made up names for contrived economic indexes. I got a better name, the "WTF CPI" and WTF 0% interest rates.

Yes, this is a proposal on the table and they are still talking.

It's funny that they are mentioning wearing more sweaters when it gets cold. When did we hear that before?

And while this is a negotiation between both parties, I think it is fair for me to put Obama's name in the title. The President signs off the final bill, and anytime we have changes in Social Security and income taxes, the President gets the credit or blame. Reagan had to negotiate to get the Dems in Congress to agree to his tax cuts and Social Security cuts, and he gets the historic credit/blame. G. H. Bush broke his "read my lips" pledge after negotiating with Dems and he gets the credit/blame for that tax increase.

Now a few of the Dems have come out saying that they will filibuster this proposal if it reaches them. And they are threatening his re-election bid.

Sens. Bernie Sanders (I-Vt.) and Sheldon Whitehouse (D-R.I.) warned Friday that President Obama faces turmoil in the Senate and in his reelection campaign if he includes Social Security cuts in any debt-ceiling deal.

The senators were joined on a press call by a coalition of liberal groups that said Obama would be punished at the polls if he touches the third rail of Social Security.

http://thehill.com/blogs/on-the-money/b ... int=1&page

So now the Republicans, Independents and Dems are all turning against him and seeing him for the total failure and liar that he is. Who else is going to vote for him other than LJ, VL, and archer?

The Viking wrote: So now the Republicans, Independents and Dems are all turning against him and seeing him for the total failure and liar that he is. Who else is going to vote for him other than LJ, VL, and archer?

Oh, probably only 66,882,227 other Americans.

Kate wrote:

The Viking wrote: So now the Republicans, Independents and Dems are all turning against him and seeing him for the total failure and liar that he is. Who else is going to vote for him other than LJ, VL, and archer?

Oh, probably only 66,882,227 other Americans.

:rofl rofllol You are dreaming!! We don't have THAT many stupid Americans!

The Viking wrote:

Kate wrote:

The Viking wrote: So now the Republicans, Independents and Dems are all turning against him and seeing him for the total failure and liar that he is. Who else is going to vote for him other than LJ, VL, and archer?

Oh, probably only 66,882,227 other Americans.

:rofl rofllol You are dreaming!! We don't have THAT many stupid Americans!

Quit laughing he will most likely win re-election. I wish the Dems would put up an alternative because all the Republicans are whack jobs, maybe not Huntsman.

69,456,897 voted for Obama in 2008 - just saying...