Deficit Reduction Plan Draws Scorn From Left and Right (updated)

[ProSense]

Deficit Reduction Plan Draws Scorn From Left and Right

By JACKIE CALMES

WASHINGTON — By putting deep spending cuts and substantial tax increases on the table, President Obama’s bipartisan debt-reduction commission has exposed fissures in both parties, underscoring the volatile nature and long odds of any attempt to address the nation’s long-term budget problems

Among Democrats, liberals are in near revolt against the White House over the issue, even as substantive and political forces push Mr. Obama to attack chronic deficits in a serious way. At the same time, Republicans face intense pressure from their conservative base and the Tea Party movement to reject any deal that includes tax increases, leaving their leaders with little room to maneuver in any negotiation and at risk of being blamed by voters for not doing their part.

Republican Congressional leaders, three of whom are on the commission, similarly remained neutral about the draft, even as conservative groups condemned its proposals to raise revenues.

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Republicans would also be looking over their shoulders at the growing ranks of the Tea Party. Ryan Hecker, from the Houston chapter, said it would be “a big mistake” for Republicans to go along with tax increases. “I think that is something that would not sit well with members of the Tea Party,” he said.

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Doesn't appear that Republicans have a lot of room or time to negotiate, and the tax cuts for the rich will automatically expire if they don't deal.

Social Security reforms could be bombshell for House GOP

Republicans who took over the House on pledges to reduce federal spending and get the nation’s budget in order are running into the third rail of U.S. politics.

A draft proposal from the co-chairman of President Obama’s fiscal commission this week put Social Security on the front burner, and led some Democrats to draw a line in the sand. The proposal would raise the retirement age, slightly reduce benefits and raise the cap on income subject to payroll taxes

While the proposal was drawn up to keep Social Security solvent and not to deal specifically with reducing the nation’s record deficit, Democratic strategists say it will be difficult for Republicans to duck an issue that has caused them political pain in the past.

“It does put them in a tough position,” Mike Lux, a strategist who works with liberal advocacy groups, said of the GOP. “These kinds of proposals, raising the retirement age and cutting benefits are overwhelmingly unpopular with the American people.

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[ProSense]

1. No comment? n/t

[shraby]

2. Particularly since may oldsters are bringing in around

18-24 thousand a year to live on with Social Security. Some may have pensions besides, but many don't. A cut in SS will put many into the poor farm. When medigap insurance, part D insurance, life insurance, car insurance, house insurance are all added together, it really takes a big bite out what they have to live on..they can't stand a cut.

[ProSense]

3. Exactly,

Social Security is third rail for Republicans too. They had a better shot at trying to convince people with Bush's privatization scheme, which failed miserably.