New Obama Budget Proposes Social Security Cuts

What's Hot


5 Reasons to Shop for a Home in DecemberFamily

Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

Giving Thanks: Why Foreigners Find America AmazingAround The House

Why Washing Your Turkey Can Make You IllFamily

50 Best Gifts Under $25 for Everyone on Your ListFamily

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

What the Richest 1 Percent Earns in Every StateFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

The 10 Best Ways to Blow Your MoneyCredit & Debt

7 Foods That Can Lengthen Your LifeFamily

The 50 Hottest Toys of the Past 50 YearsFamily

New Email Phishing Scam Targets Amazon ShoppersMore

7 Government Freebies You Can Get TodayFamily

President Obama's vision for government spending in the next year includes slowing the growth of entitlement benefits and eliminating tax breaks for the rich.

While the White House’s proposed budget for this year won’t be officially released until later in the week, details of it began leaking out Friday.

The Associated Press reports one proposed change would lower the rate of increase for entitlement programs, affecting Social Security more than others. An anonymous official first revealed that the cuts would come through a change to the way inflation is measured.

By switching to a method called “chained CPI [Consumer Price Index],” Social Security, veterans’ benefits and government pensions would grow more slowly. It would also effectively raise taxes because it would shift tax brackets, according to The Wall Street Journal.

The proposed budget would reduce the federal deficit by an estimated $1.8 trillion over 10 years. The CPI change would account for about $230 billion of those savings (12.8 percent) and is something Republicans have been demanding. But there’s something in the budget for everybody to hate, because it would also eliminate an estimated $580 billion in tax breaks for the wealthy.

This is just a proposal, of course, and Congress will spend plenty of time arguing about it. The budget year begins Oct. 1. If you’re worried about Social Security, be sure to check out our story about how to get more of it.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 15 Things You Should Always Buy at a Dollar Store

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,778 more deals!