President Obama's budget calls for cuts to Social Security
Posted at: 04/10/2013 5:21 PM
By: Ray Levato | WHEC.com
President Barack Obama is sending Congress a $3.8 trillion spending blueprint that strives to achieve a "grand bargain" to tame runaway deficits. It would raise taxes on the wealthy and trim popular benefit programs including as Social Security and Medicare.
The president's budget projects deficit reductions of $1.8 trillion over the next decade, achieved with higher taxes, reductions in payments to Medicare providers and trims in the cost-of-living adjustments paid to millions of recipients in Social Security and other government programs.
The budget would also nearly double the federal tax on cigarettes to $1.95 per pack. That money would fund a new pre-school program for 4-year-olds.
The president proposes spending $3.8 trillion in the 2014 fiscal year, which begins Oct. 1, up 2.5 percent from this year.
So what do President Obama's budget cuts mean in dollars and cents for those who depend on Social Security money?
This year, Social Security says the cost of living increase is 1.7%. Your check would be cut by a smaller percentage than that. So, for the average 65-year-old retiree, it means you'll be cut $5,000 by the time you are 80, and $14,000 by age 90.
AARP believes these cuts are harmful to seniors and don't take into account their fixed expenses.
David Irwin, AARP spokesman, said, “We've let the president and Congress know we are adamantly opposed to this. It doesn't take into account all of their fixed expenses such as health care, utilities, prescription drugs and housing. Those are costs that they can't trade down.”
If you want to know how much your benefits could be cut, the AARP has a calculator to help you figure that out.