After Hanging Tough Is the President About to Sell You Out?

After hanging tough on his budget proposals for avoiding the supposed ‘fiscal cliff’, it looks like the President is willing to reduce Social Security benefits. Wait, what?

Social Security isn’t even part of the deficit problem. It is self funded and self sustaining and is liquid for quite a few more years without any tweaking whatsoever. It should come under some scrutiny in the near future. And lifting the cap on taxable earnings for Social Security taxes would solve the liquidity problem beyond the lifetimes of anyone who is reading this and their children. But that discussion should occur later…after this self imposed crisis is over…it’s got nothing at all to do with the current issue.

(well it does briefly…the 2 point moratorium on payroll taxes that we have enjoyed the past year is being made up out of the general fund…so it currently is contributing to the deficit just a wee bit…but that’s an exception…not the rule)

But the President has shown a willingness to reduce future cost of living adjustments by allowing changes to how inflation is determined. That will in fact reduce Social Security benefits for current and future retirees. This isn’t necessary and goes completely against the general consensus in the country. Shame on the President for even considering this just to sweeten the pot for the Republicans.

Social Security should be off the table for this round of economic discussions.

7 thoughts on “After Hanging Tough Is the President About to Sell You Out?

  1. Laurie G

    republicans will not vote in favor of any tax increase even if it means we will go over the clif. Obama knows this and is using this tactic to show that the republicans are not serious.


    1. Ed Heinzelman Post author

      Here’s the irony in the Republican position…I started a blog about it and never got it here to Blogging Blue…but doing nothing and letting us ‘go over the cliff’ by default raises taxes. Wth?


  2. Dan

    I disagree Laurie. I think he will be making some cuts to social security. I have been hearing from my sources for several weeks now that the Republicans will settle on about $500,000 as the income level for the tax increase. Meanwhile, Obama will give up a few things as well.

    I think neither side will be particularly happy after this. But I think the Republicans are in a better position for a political win on this issue just because their base will be less angry with the tax hike than the Democrat’s base will on the social security cuts.


    1. nonquixote

      Your sources? Bwaaa-ha-ha-ha. Too difficult to link?

      Obomber follows predicted path, capitulates to himself. Folds before cards are dealt. Oilbummer gives up on taxes and debt ceiling advantage as his opening gambit. Reagan Republican incarnate in sorryO.

      Did none of you take any notice in the first four years or read anything prior to the election? When did he ever hang tough? Bwaaa-haha!


      1. Dan

        They aren\’t really linkable sources. Just the ongoing discussion in the public accounting community of which I am a part.


  3. fohledu

    The problem isn’t that it’s self sustaining. The problem is that our government keeps stealing from it.


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