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Obama’s Budget Cuts Entitlements For ‘The Rich’

From a cheering New York Times:

Obama Budget Reviving Offer of Compromise With Cuts

By JACKIE CALMES | April 5, 2013

WASHINGTON — President Obama next week will take the political risk of formally proposing cuts to Social Security and Medicare in his annual budget in an effort to demonstrate his willingness to compromise with Republicans and revive prospects for a long-term deficit-reduction deal, administration officials say.

Look at how many times the word "compromise" is used in this story. In reality, Obama’s budget raises taxes by $600 billion, limits deductions on "the rich," including even deductions for their savings accounts. (Hello, Cyprus.)

In exchange, Obama is willing to cut the cost of living increases for Social Security, which haven’t been happening anyway, since the administration pretends there is no inflation.

In a significant shift in fiscal strategy, Mr. Obama on Wednesday will send a budget plan to Capitol Hill that departs from the usual presidential wish list that Republicans typically declare dead on arrival. Instead it will embody the final compromise offer that he made to Speaker John A. Boehner late last year, before Mr. Boehner abandoned negotiations in opposition to the president’s demand for higher taxes from wealthy individuals and some corporations…

The Times is re-writing history here. Even the Washington Post has admitted that it was Obama who blew up the ‘grand bargain’ by demanding more in taxes, after Boehner had conceded to all of his wishes.

Mr. Obama’s proposed deficit reduction would replace [the sequester] cuts. And if Republicans continue to resist the president, the White House believes that most Americans will blame them for the fiscal paralysis.

Gee, that’s a switch.

Besides the tax increases that most Republicans continue to oppose, Mr. Obama’s budget will propose a new inflation formula that would have the effect of reducing cost-of-living payments for Social Security benefits, though with financial protections for low-income and very old beneficiaries, administration officials said…

That is, Obama is cutting social security for ‘the rich,’ even though it is supposed to be an insurance program that they have paid into all of their lives. But this is not even a new proposal from Obama. And, in reality, it will only amount to pennies.

As Mr. Obama has before, his budget documents will emphasize that he would support the cost-of-living change, as well as other reductions that Republicans have called for in the popular programs for older Americans, only if Republicans agree to additional taxes on the wealthy and infrastructure investments that the president called for in last year’s offer to Mr. Boehner.

Mr. Obama will propose other spending and tax credit initiatives, including aid for states to make free prekindergarten education available nationwide — a priority outlined in his State of the Union address in February.

And this is all we hear about Obama’s spending increases.

He will propose to pay for it by raising federal taxes on cigarettes and other tobacco products…

He will using nicotine addicts to pay for propagandizing children in government schools even earlier. And, of course, creating more jobs for his foot soldiers in the teachers unions and SEIU.

Buried in the 15th paragraph of this article we find:

To offset the initiatives’ cost and avoid adding to deficits, Mr. Obama will propose the tobacco tax increase, a limit of $3 million on how much people can accumulate in tax-preferred savings accounts and repeal of a loophole that allows people to collect both disability and unemployment benefits…

So Obama has his sights on our retirement savings. And, don’t worry, ‘the rich’ are just the beginning.

And buried in the 19th paragraph, we finally hear how much he wants to raise in new taxes:

[Obama] will propose more than $600 billion in new revenues — his last offer had called for $1.2 trillion in taxes — mostly by limiting to 28 percent the deductions that individuals in higher tax brackets can claim...

And never mind that ‘the rich’ just got hit with a $600 billion tax increase. This will do wonders for the economy.

Mr. Obama’s proposed spending reductions include about $400 billion from health programs and $200 billion from other areas, including farm subsidies, federal employee retirement programs, the Postal Service and the unemployment compensation system.

He is going to cut retirement programs and unemployment benefits? And we are supposed to believe this?

In Medicare, the savings would mostly come from payments to health care providers, including hospitals and pharmaceutical companies, but Mr. Obama also proposes that higher-income beneficiaries pay more for coverage.

Naturally. And never mind that they also paid into this program all of their working lives.

This article was posted by Steve Gilbert on Friday, April 5th, 2013. Comments are currently closed.

One Response to “Obama’s Budget Cuts Entitlements For ‘The Rich’”

  1. Petronius

    This time around Nerobama’s really figured out how to make socialism work.

    Unlimited central planning. Unlimited spending. Unlimited taxes on “the rich.” Unlimited Social Security and Medicare cuts for “the rich.” Unlimited confiscations of retirement savings and pensions of “the rich.” Unlimited limits on capital formation. Unlimited price controls on health care providers. Unlimited regulation. Unlimited debt. Unlimited money printing. Unlimited inflation. Unlimited subprime mortgages. Unlimited defense cuts. Unlimited immigration. Unlimited unemployment. Unlimited presidential powers. Unlimited blaming of George Bush and the GOP.

    Sounds like a winning formula to me. What’s not to like?


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