HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Harry Reid "not prep...

Tue Dec 18, 2012, 10:05 AM

Harry Reid "not prepared to accept the emerging deal yet"

The Morning Plum: Should progressives accept emerging fiscal cliff deal?

Posted by Greg Sargent

<...>

On the spending cut side: $800 billion, including defense cuts. No rise in the Medicare eligibility age, but there would be “chained CPI” on Social Security, i.e., a change in the measurement of inflation that amounts to a benefit cut. While the hard line on Medicare is good, in essence, the emerging framework keeps taxes low on income between $250,000 and $400,000, while raising taxes on the middle class (the payroll tax cut would expire) and cutting Social Security.

However, according to an official familiar with the talks, the White House continues to insist on various ways of softening the blow of “chained CPI” that are supported by progressive economists, though the details are still unclear. The liberal Center on Budget and Policy Priorities is willing to support “chained CPI” if it is offset with a small increase in Social Security benefits for longtime beneficiaries and an exemption of of Supplemental Security Income, which is geared towards the poor and disabled. And so, a lot will depend on what the final agreement on Social Security looks like.

The left looks to be mobilizing to pressure Harry Reid not to accept any Social Security cuts, because he previously said Social Security should not be part of any deal. A senior Senate Dem aide tells me that Reid is not prepared to accept the emerging deal yet; he wants to talk to his caucus about it first.

The big picture: With this deal Obama will have broken the GOP’s fundamentalist opposition to raising tax rates on the rich (albeit only on income over $400,000) something that would have been deemed very unlikely a year ago. He will have held the line against the GOP demand for two years of Medicare — a victory. Debt ceiling hostage taking will have been deferred for two years, meaning it won’t get tied up in the next elections. He will have obtained stimulus spending — on infrastructure, and in the form of an extension of unemployment benefits — and as Paul Krugman notes, that wouldn’t happen if we go over the cliff. (I’m told the talks have not focused on the exact sum of stimulus spending the White House wants.) The price: The expiration of the payroll tax cut and the cut in Social Security benefits. That’s bad, but the damage could be limited, if the White House insists on it.

- more -

http://www.washingtonpost.com/blogs/plum-line/wp/2012/12/18/the-morning-plum-should-progressives-accept-the-new-fiscal-cliff-deal/


6 replies, 654 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 6 replies Author Time Post
Reply Harry Reid "not prepared to accept the emerging deal yet" (Original post)
ProSense Dec 2012 OP
truebrit71 Dec 2012 #1
duffyduff Dec 2012 #2
bluestate10 Dec 2012 #3
Dawgs Dec 2012 #4
Panasonic Dec 2012 #5
Faryn Balyncd Dec 2012 #6

Response to ProSense (Original post)

Tue Dec 18, 2012, 10:09 AM

1. No cuts to Social Security are acceptable. PERIOD.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Dec 18, 2012, 10:10 AM

2. I hope Sanders and Democrats in the Senate and House

will shoot this nonsense down.

There WILL be hell to pay if SS and Medicare are screwed with.

Let the fiscal cliff happen.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Dec 18, 2012, 10:14 AM

3. Why do old people vote mostly for republicans? The party has offered them absolutely nothing but

gruel-like comfort for their fears about the "others".

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Dec 18, 2012, 10:15 AM

4. I currently support Democrats, but no longer call myself one.

If they go along with this I will no longer support them.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Dec 18, 2012, 10:25 AM

5. Good and Reid should NOT.

 

The Chained CPI is unaccpetable as Social Security does not create deficits. It's time to leave Medicare, Medicaid, Social Security alone. It's time for the Republicans to implement their painful cuts to the overbloated Department of Defense budget and ending all oil & gas subsidies as they continue to make profits on our livelihood.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Dec 18, 2012, 10:34 AM

6. He needs to hear from us that cooking the books with CPI fraud ("chained CPI") is unacceptable.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread