Obama budget to make small entitlement cuts

President Obama will deliver his budget proposal next week - 2 months late as usual - and in it, he will make an offer that some Senate Republicans may be unable to refuse. In exchange for some small cuts in entitlement programs, the president will propose more stimulus spending, increased tobacco taxes and closing some loopholes in the tax code. For Social Security, there would be a significant, but small change; tying yearly increases in benefits to a "chained" CPI. This is the carrot Obama is offering the GOP who have been pushing this idea for years. For Medicare, a reduction in payment to doctors and hospitals and making wealthier seniors pay more for coverage. Will the GOP take the bait? New York Times: Congressional Republicans have dug in against any new tax revenues after higher taxes for the affluent were approved at the start of the year. The administration's hope is to create cracks in Republicans' antitax resistance, especially in the Senate, as constituents...(Read Full Post)