How Barack Obama plans to cut social security spending by $130 billion
Walter Hickey Business Insider
President Obama released the White House budget on April 10th, and the official document gives a much better picture about what his cuts to Social Security would look like in more depth.
The White House plan — as a concession to House Republicans — included a shift in the way the government calculates cost-of-living-adjustments for Social Security and other mandatory spending programs.
What this really means is that the White House budget plan will cut Social Security and other entitlement benefits by a cumulative $130 billion over the next ten years, going against previous promises and infuriating groups that represent retired Americans.
See attached the annual cost-of-living adjustment cuts to mandatory spending. Since most the COLA adjustments to mandatory spending are predominantly manifested in social security.
This isn’t a small amount of money, either. The government’s savings from toggling CPI begin low — at 0.22% — and then gradually increase to 1.86% of the entire Social Security system. This will have a drastic impact on an individual’s cumulative social security checks as long as the policy remains in place beyond the 10 year window.
To reads the exact details go to: http://www.whitehouse.gov/sites/default/files/omb/budget/fy2014/assets/budget.pdf#page=194
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