Politics
Obama Fiscal Year 2014 budget proposal to kick start deficit-reduction talks
Controversially, it proposes using a less generous measure of inflation to calculate cost-of-living benefit increases for the beneficiaries of some federal programs. This change would have the effect of shrinking payments to some who receive Social Security benefits.
Although Obama has pledged to shield the most vulnerable beneficiaries, the proposal has drawn strong opposition from fellow Democrats and groups representing labor.
Representative Paul Ryan, the Republican vice presidential nominee last year and a potential 2016 presidential candidate, said Obama’s budget was “worse than status-quo” because of its tax and spending hikes, but he said there were some small areas of common ground for further discussion on entitlement programs such as Social Security and Medicare.
“At least he’s put something here that shows his willingness to address entitlements,” Ryan said.
“So that gives me a glimmer of hope that there’s a way of getting to an agreement at the end of the day, but we’re obviously a long way from there right now.”
Obama’s budget is a clear contrast with a rival blueprint by Ryan, whose plan aims to balance the budget in 10 years through deep cuts to healthcare and social programs while lowering tax rates.
“There are three enormous roadblocks – revenues, entitlement reforms, and the sequester,” said Chris Krueger, a Washington analyst for Guggenheim Partners, referring to prospects for an agreement. “They’re all just miles apart.”
