ENTITLEMENT CLASH: Boehner Pans Obama Plan To Trade Cuts for Tax Hike
House Speaker John Boehner preemptively rejected President Obama's call for more tax hikes Friday, after administration officials revealed the president's upcoming budget would tie tax hikes to modest changes in Social Security and other benefit programs.
The president plans to unveil his budget Wednesday. According to a senior administration official, the plan includes a provision to lower cost-of-living adjustments to Social Security, the benefit program for retirees. This would curb the growth in benefits.
The administration made clear that it is offering changes to Social Security and Medicare -- the two benefit programs most important to seniors -- in order to convince Republicans to accept increased revenues. The official said the plan to be unveiled next week "isn't a menu of options for them to choose from -- it's a cohesive package."
But Boehner bristled at the demand, noting that the president and his party already extracted tax increases on top earners as part of the deal to avert the fiscal crisis at the end of 2012.