Obama budget takes heat from all quarters
Does President Obama鈥檚 budget have a snowball鈥檚 chance in Hades?
He鈥檒l submit his administration鈥檚 budget for the fiscal year beginning in October on Wednesday, and based on leaked details it鈥檚 getting largely negative reviews.
House Speaker John Boehner has rejected it because it includes new revenues, meaning some new taxes on the wealthy. Mr. Obama鈥檚 liberal base promises to block any cuts in entitlements 鈥� in particular, a revised inflation adjustment for Social Security known as "chained CPI."聽
"There are nuggets of his budget that I think are optimistic." Sen. Lindsey Graham of South Carolina said on NBC's "Meet the Press" Sunday 鈥� the only praise, however lukewarm, heard from a Republican.
"The president is showing a little bit of leg here, this is somewhat encouraging," said Senator Graham. "He has sort of made a step forward in the entitlement-reform process."
"He showed some leadership," Graham added. "That puts the burden on us."
Which is exactly what Obama鈥檚 liberal base fears, a fact all too clear to the White House, which sought to clarify its position Sunday.
"This chained CPI that鈥檚 being referred to here, it is something the president will only accept on two conditions," senior adviser Dan Pfeiffer聽said on ABC鈥檚 鈥淭his Week.鈥� "One, it鈥檚 part of a balanced package that includes closing tax loopholes that benefit the wealthiest, and two, that it has protections for the most vulnerable, including the oldest seniors."
On Wednesday 鈥� the day he officially unveils his budget for fiscal year 2014 鈥� Obama will dine with a dozen Republican senators.
"The president's focus, in addition to the regular order process that members of Congress say they want, is to try to find a caucus of common sense, folks who are willing to compromise, that don't think compromise is a dirty word, and try to get something done," Mr. Pfeiffer said Sunday on "This Week.鈥�
But Obama might want to schedule a meal with liberal lawmakers and pundits as well.
鈥淚 will never support any reductions in Social Security, Medicare or Medicaid benefits 鈥� and chained CPI is a direct reduction in Social Security benefits,鈥� says Rep. Jerry Nadler of New York. 鈥淎long with my fellow progressives, I will vehemently oppose any such cuts.鈥�
鈥淎ny 鈥榙emocrat鈥� who supports these proposals is never going to get my vote,鈥� warns the economic analyst known as 鈥淣ew Deal Democrat鈥� on the Bonddad Blog. 鈥淚 will support any primary opponents and I will accept a one term GOPer if necessary to end the political career of any Grand Betrayers, replacing them with a progressive in 2 or 6 years. And I know I am far from alone.鈥�
On his Conscience of a Liberal blog, New York Times columnist and Nobel Prize-winning economist Paul Krugman says chained CPI is 鈥減urely and simply, a benefit cut.鈥�
鈥淪o what鈥檚 this about?鈥� Mr. Krugman asks. 鈥淭he answer, I fear, is that Obama is still trying to win over the Serious People, by showing that he鈥檚 willing to do what they consider Serious 鈥� which just about always means sticking it to the poor and the middle class.鈥澛�
Labor unions threaten to 鈥渕ake noise鈥� about the entitlement elements in Obama鈥檚 budget as well.
"It is unconscionable to ask seniors, people with disabilities and veterans who are barely making it to be squeezed even tighter at a time when corporations and the wealthiest 2 percent are not paying their fair share of taxes, despite soaring profits," AFL-CIO policy director Damon Silvers聽writes in an e-mail reported by Politico. "It鈥檚 bad policy to make cuts that will weaken our economic recovery."
"The majority of Americans oppose cuts to our country鈥檚 most important family protection programs. It鈥檚 time to make some noise about it," Mr. Silvers writes. "We need to invest in America's working families, not pull the rug out from under them."
The House and Senate have already passed their own budget plans, with the Republican-controlled House cutting $5.7 trillion in spending and balancing in 10 years, and the Democrat-controlled Senate plan raising taxes by $1 trillion.
鈥淭here is a good chance both sides want to compromise,鈥� predicts White House adviser Pfeiffer.
But, he warns, 鈥淚f the Republicans, particularly in the House, think my way or the highway approach, then we鈥檙e not going to get a deal. Simple as that.鈥�
