Send a Tweet
Most Popular Choices
Share on Facebook 2 Share on Twitter 3 Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
OpEdNews Op Eds

Cliff Hanger: The President's Unnecessary and Unwise Concessions

By   Follow Me on Twitter     Message Robert B. Reich       (Page 1 of 1 pages)     Permalink    (# of views)   17 comments

Related Topic(s): ; ; ; , Add Tags
Add to My Group(s)

Well Said 3   Must Read 2   Valuable 2  
View Ratings | Rate It

opednews.com Headlined to H2 12/20/12

Author 47089
Become a Fan
  (127 fans)


(Image by Unknown Owner)   Details   DMCA
- Advertisement -
!-- IMAGE http://www.opednews.com/populum/uploadnic/obama-reuters-kevin-lamarque-jpg_11_20121220-795.jpg FOR SID 47089 -->

Why is the President back to making premature and unnecessary concessions to Republicans?

Two central issues in the 2012 presidential election were whether the Bush tax cuts should be ended for people earning over $250,000, and whether Social Security and Medicare should be protected from future budget cuts.

The President said yes to both. Republicans said no. Obama won.

- Advertisement -

But apparently the President is now offering to continue Bush tax cuts for people earning between $250,000 and $400,000, and to cut Social Security by reducing annual cost-of-living adjustments.

These concessions aren't necessary. If the nation goes over the so-called "fiscal cliff" and tax rates return to what they were under Bill Clinton, Democrats can then introduce a tax cut for everyone earning under $250,000 and make it retroactive to the start of the year.

They can combine it with a spending bill that makes up for most of the cuts scheduled to go into effect in January. Republicans would be hard-pressed not to sign on.

- Advertisement -

Social Security should not be part of any such deal anyway. By law, it can't contribute to the budget deficit. It's only permitted to spend money from the Social Security trust fund.

Besides, the President's proposed reduction in annual Social Security cost-of-living adjustments would save only $122 billion over 10 years. Yet it would significantly harm the elderly.

It defies logic and fairness to give more tax cuts to the wealthy while cutting benefits for the near-poor.

The median income of Americans over 65 is less than $20,000 a year. Nearly 70 percent of them depend on Social Security for more than half of this. The average Social Security benefit is less than $15,000 a year.

Even Social Security's current cost-of-living adjustment understates the true impact of inflation on elderly recipients, who spend far more on health care than anyone else -- including annual increases in Medicare premiums.

Hands off Social Security. If the Republicans are willing to raise tax rates on high earners but demand more spending cuts in return, the President should offer larger cuts in defense spending and corporate welfare.

- Advertisement -

 

- Advertisement -

Well Said 3   Must Read 2   Valuable 2  
View Ratings | Rate It

opednews.com

Robert Reich, former U.S. Secretary of Labor and Professor of Public Policy at the University of California at Berkeley, has a new film, "Inequality for All," to be released September 27. He blogs at www.robertreich.org.

Robert B. Reich Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Republican's Big Lies About Jobs (And Why Obama Must Repudiate Them)

Paul Ryan Still Doesn't Get It

What Mitt Romney Really Represents

What to Do About Disloyal Corporations

The Gas Wars

The Minimum Wage, Guns, Healthcare, and the Meaning of a Decent Society