Obama Budget to Include Social Security Debt-Cutting Plan
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President Barack Obama will propose cutting spending on Social Security and Medicare in the budget he sends to Congress next week, reviving a deficit-cutting deal first proposed to congressional Republicans in December.
The core of the plan, set for release April 10, would change the inflation calculation for Social Security cost-of-living increases, slowing benefit increases. It also would limit inflation adjustments to tax brackets, resulting in a larger tax bill for many Americans, according to an outline released by the White House. For Medicare, Obama has proposed reducing payments to drug companies and care providers and imposing higher costs on high-income beneficiaries.