Obama budget said to include earlier debt reduction offer
The White House is telling lawmakers that President Obama’s budget plan will mirror previous deficit-cutting proposals, which included changing the calculation for Social Security cost-of-living increases and tax brackets.
The budget plan, set for release April 10, will track the offer on spending cuts and revenue increases that Obama made to House Speaker John Boehner of Ohio as part of an end-of-the-year deal on expiring tax cuts, according to a person familiar with the discussions who asked for anonymity because the budget details haven’t been made public.
That plan included a new inflation gauge that would effectively reduce cost-of-living payments for Social Security beneficiaries, a measure that is sure to draw opposition from many Democrats. It also proposed using the calculation for adjusting income tax brackets, which would mean higher payments for many taxpayers.
While Obama’s fifth budget proposal stands little chance of becoming law because of opposition from Republicans who control the House, it emphasizes the president’s priorities and will set the stage for talks with Republicans on a broader debt-reduction package.