President Obama’s Budget Proposal Does Not Include Social Security Cuts

From the Alliance for Retired Americans:

President Obama’s Budget Proposal Does Not Include Social Security Cuts
On Monday, President Obama released his much-anticipated budget proposal for the 2012 fiscal year. While Republican leaders are calling for lower Social Security payments for seniors and an increase in the retirement age, the President upheld his commitment to retirees by leaving out cuts to Social Security. There are no proposed changes in the budget that would raise the retirement age; cut benefits or the Cost of Living Adjustment (COLA); or raise the earnings cap subject to Social Security payroll taxes. The President’s budget proposes a one time $250 payment to Social Security beneficiaries and other retirees in lieu of the COLA, like last year's budget submission, but this provision was not enacted last time.

The President also proposed $2.57 billion for the Low Income Home Energy Assistance Program – a cut by half from previous levels. The administration feels that a decrease in funding is warranted because of a decrease in energy prices. “We as a nation cannot afford to balance the budget and reduce the deficit by leaving our most vulnerable citizens, those who live in low-income households and are on fixed incomes, out in the cold,” said Ruben Burks, Secretary-Treasurer of the Alliance.

The budget proposal would postpone for two years a scheduled 25% cut in the Medicare physician payment formula, known as the Sustainable Growth Rate, that is set to go into effect at the end of the year. The $62 billion “doc fix” would be paid for in part by changes that cut other sources of federal health spending. “We hope that our President will continue to be a strong champion of Social Security and Medicare, and that he will continue to stand up to the Republicans who want to cut these programs that help millions of seniors,” said Barbara J. Easterling, President of the Alliance.

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