Obama's Coming Budget Proposals Will Include Entitlement Cuts

March 29, 2013 02:23 AM
 

via a special arrangement with Informa Economics, Inc.

Farm policy stakeholders wonder what's in store for delayed, April 10 White House budget proposals


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


President Obama will submit the first budget proposal of his second term to Congress on April 10, a considerably tardy date for the budget plan, and one that comes after both House and Senate have already adopted their budget resolutions for Fiscal Year 2014, which lessens its influence. By statute, the administration's budget is due no later than the first Monday in February, which this year was Feb. 4

Latest word is that Obama's budget plan will include entitlement curbs, such as reductions in future Medicare, Medicaid and Social Security payments. One possibility is to slow the growth rate of Social Security benefits by using a variant of the Consumer Price Index to measure inflation. The new inflation indicator would cut overall spending by $130 billion, according to White House projections, and raise $100 billion in tax revenue by slowing the growth of tax brackets. The White House earlier called for an additional $800 billion or so in cuts on top of those resulting from the inflation adjustments.

Other possible Obama initiatives would be higher taxes via limits on tax breaks.

Agriculture interests await any Obama proposals regarding several topics such as payment caps on farm program payouts, and any proposals to temper crop insurance subsidies, as prior Obama budgets have proposed.

Boehner releases major budget memo. In a message sent Thursday to rank-and-file House Republicans, House Speaker John Boehner (R-Ohio) recaps how he believes his conference has reframed the national debate on taxes and spending in the first few months of 2013…"We made the decision to center the spending debate on sequestration rather than on the debt ceiling or legislation to keep the government running, denying the president the ability to hide behind straw men in his reluctance to control spending," the message reads.


Comments: As with prior Obama budget proposals, many of his suggestions will not be included in final congressional budget measures. But some of the president's coming proposals are most likely geared to upcoming defit hike/budget negotiations.


 

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


 


 

 

 

 

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