Obama Suggests He’ll Include Social Security, Medicare, and Medicaid Cuts in 2014 Budget Due in April

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Thanks to Susie Madrak and Joseph Cannon for catching this White House trial balloon–naturally floated right before a long holiday weekend. From The Wall Street Journal:

The White House is strongly considering including limits on entitlement benefits in its fiscal 2014 budget—a proposal it first offered Republicans in December. The move would be aimed in part at keeping alive bipartisan talks on a major budget deal.

Such a proposal could include steps that make many Democrats queasy, such as reductions in future Medicare, Medicaid and Social Security payments, but also items resisted by Republicans, such as higher taxes through limits on tax breaks, people close to the White House said.

These measures would come as President Barack Obama continues his courtship of the Senate GOP in an effort to thaw tax-and-spending talks. The White House’s delayed annual budget is scheduled to be released April 10, the same day Mr. Obama plans to dine with a group of Senate Republicans to discuss the budget and other issues….

People close to the White House believe a proposal to slow the growth rate of such benefits would use a variant of the Consumer Price Index to measure inflation. The new inflation indicator would cut overall spending by $130 billion, according to White House projections, and raise $100 billion in tax revenue by slowing the growth of tax brackets. The White House earlier called for an additional $800 billion or so in cuts on top of those resulting from the inflation adjustments.

“We and all of the groups engaged on this are starting to feel it may well be in the budget,” said Nancy LeaMond, executive vice president at AARP, an advocacy group for seniors that opposes such changes.

According to the WSJ article, the White House would “insist” that if cuts to safety net programs are included, the entire budget package would have to get an up or down vote. I’m not sure how they would enforce that.

From Susie’s post at Crooks and Liars:

Get your dialing fingers ready. There’s a reason they let this story out on Good Friday, they’re counting on you not noticing or being too busy to do anything about it. The White House switchboard is 202-456-1414, the comments line is 202-456-1111 (be prepared to hold) or you can email here.

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