President Obama Social Security cuts proposal: Chained CPI revised inflation adjustment proposed

WASHINGTON, DC - President Barack Obama is proposing cuts to Social Security as an attempt to compromise with Republicans on the budget.

   A senior administration official says the budget Obama will offer to Congress next Wednesday would reduce the deficit by $1.8 trillion over 10 years. It includes a revised inflation adjustment called "chained CPI" that would curb cost-of-living increases in Social Security and other benefit programs.

   The senior administration official stressed it is not the president's preferred approach but a compromise proposal to try to reach a long-term budget deal. Obama first made the offer to House Speaker John Boehner last year.

   The official spoke on a condition of anonymity since the budget has yet to be released. Technically, the administration actually would be limiting the growth of Social Security.
 

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