Deficit Panel Proposes Social Security Cuts

Deficit Panel proposes Social Security cuts. Social Security cuts is the latest proposal by President Barack Obama’s bipartisan deficit panel. The commission wants to reduce the annual cost-of-living increases and raise the retirement age to 69 while removing tax cuts.

In other words, Social Security is under attack, as part of a proposal to wrestle $1-trillion-plus deficits under control, and the panel wants to curb the growth of Medicare. It came a week after voters put Republicans back in charge of the House and told Washington that the government is too big. It still appears that nobody is listening.

Other cuts include a federal workforce reduction of 10 percent, or 200,000 jobs. Military defense cuts would be $100 billion and farm subsidies but by $3 billion each year. Social Security benefits would be reduced for higher incomes and the retirement age would gradually increase from 67 to 69.

And that’s not all because some taxes would be cut including tax rates for the highest bracket of 35 percent could go as low as 23 percent. Corporate rates would go from 35 percent to as low as 26 percent. The alternative minimum tax intended for upper tax brackets and now hitting the middle class families would be eliminated.

“We’ll both be in a witness protection program when this is all over, so look us up,” former Sen. Alan Simpson, the co-chairman, said in a statement. Chairman Erskine Bowles said: “We’re not asking anybody to vote for this plan. This is a starting point.” The White House remains mute on the subject. “The president will wait until the bipartisan fiscal commission finishes its work before commenting,” White House spokesman Bill Burton said in a statement.