From Common Dreams —
Reports indicate that Obama has willingly affronted public opinion, sound economics, and his political base of supporters by agreeing to make significant cuts to Social Security, health programs, education, and other programs while at the same time making some of the most odious benefits for the nation’s financial elite permanent.
In a new deal—though certainly out of step with “the New Deal”—offered by the White House late Monday, President Obama showed that he’d rather cut health and social service programs for the nation’s poor and elderly than allow tax rates for some of the nation’s wealthiest individuals to go up.
Long holding that tax rates should go back to previous and modestly higher rates for all individuals making $250,000 or more, Obama has now given that popular promise away by offering to make the Bush tax cuts permanent for all those making $400,000 or less in exchange for a deal with Republican Speaker of the House John Boehner.
In addition, reports the Washington Post‘s Ezra Klein in his review of what may be in the final agreement, he says, the payroll tax cut, which middle class workers have enjoyed during the current economic down turn– and what Klein classifies as “one of the most stimulative policies”–will be allowed to lapse. Klein called it “perverse” to do such a thing.
To make up for this loss of revenue, Obama has put cuts to Social Security benefits on the table by changing the way cost-of-living adjustments are calculated. The change, known as the “chained CPI” which would alter the way payments are calculated, is a cynical ploy by the White House, say most critics, because politicians likely feel they can get away by calling it an “adjustment” rather than a “cut.”
Guess what? The American people DID elect Mitt Romney