Friday, July 22, 2011

Push Back From Social Security & Medicare Cuts

The Washington Post reports that White House sources have admitted that they are seeking a deal "to the right of the Gang of Six."

Congressional and administration officials said the White House informed Democratic leaders about the talks after Obama met privately with Boehner and House Majority Leader Eric Cantor (R-Va.) late Wednesday. Congressional aides, speaking on the condition of anonymity to detail private discussions, said the White House acknowledged that the emerging agreement is “to the right of the Gang of Six” — a bipartisan Senate debt-reduction framework unveiled this week — and far removed from what Democrats have said would be acceptable.

WaPo and the Wall Street Journal report that Senate Democrats went off on OMB Director Jacob Lew. The reason being is that Obama and Republicans are negotiating decreases in cost of increasing rates to Medicare and Social Security. In exchange, Obama gets no tax increases for giving two Democratic sacred cows to the Republicans to carve up. It appears that the Democratic caucus will not go for it. For now.

After a lunchtime meeting between Lew and Senate Democrats, Majority Leader Harry M. Reid (D-Nev.) made no attempt to hide his anger, telling reporters that his caucus would oppose the “potential agreement” because it appeared to include no clear guarantee of increased revenue.

“The president always talked about balance, that there had to be some fairness in this, that this can’t be all cuts. There has to be a balance. There has to be some revenue and cuts. My caucus agrees with that,” Reid said. “I hope that the president sticks with that. I’m confident that he will.”

Democrats for planning to go into the 2012 election campaigning against Rep. Paul Ryan's attempted Medicare cuts. Obama is trying to make cuts into Medicare and Social Security. I can guarantee Republicans will run attack ads against Obama if he succeeds in enacting these cuts. The policy is horrible. Why Obama thinks this is good politics is beyond me.

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