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Mitt Romney lost handily to President Obama, and Obama’s win has Republicans on the defensive, so why are numerous outlets reporting that President Obama is preparing to cave in to House Maj. Leader John Boehner’s demands?
Switching the inflation yardstick to the so-called chained consumer price index would reduce Social Security cost-of-living benefit increases and generate fresh revenue because it also would reset income-tax brackets. Some Democrats in Congress have said they’re willing to make that change.
the main features of the emerging compromise include a tax rate hike on income over $400,000 and new rules for deductions, a jump from 15 to 20 percent in the capital gains rate, an extension of unemployment benefits, the end of the payroll tax holiday, and a change to the cost-of-living formula for Social Security benefits. Further cuts to Medicaid or Medicare, needed to meet Boehner’s demand for more than $1 trillion in spending cuts, would be sorted out by Congress…
And the Huffington Post reports:
Obama’s offer would allow the payroll tax holiday to expire, meaning middle class workers will see smaller paychecks in 2013. Economists have warned that the recovery is too fragile to risk a broad tax hike on workers.
Those who recall President Obama’s election should also recall that he promised to protect Medicare and Social Security, but now it appears that both are on the chopping block, the only question is why? Why isn’t Obama looking for other ways to make up for the shortfalls created by bankers who blew up the economy?