MORNING MESSAGE: This Is Not America's Deal
OurFuture.org's Richard Eskow: "Our leaders in Washington heard from the voters last month. They may need to hear from them again. According to news reports a budget deal is coalescing around some very unattractive and unwise ideas … The deal being floated uses the sneaky 'chained CPI' to cut Social Security benefits – a lot – for current and future recipients. This supposed 'correction' in calculating annual cost-of-living increases makes an already-inadequate formula even less fair to the elderly and disabled. It’s a drastic cut, too: a 3.7 percent cut for the average 75 year old, a 6.5 percent cut for 85 year olds, and a 9.2 percent cut for 95 year olds … You can go here to tell President Obama: No deal that cuts Social Security, Medicare or Medicaid."
Obama, Boehner Close
President, Boehner counteroffers begin to converge as deal appears imminent. W. Post: "Obama laid out a counteroffer that included significant concessions … limiting the hike in tax rates to households earning more than $400,000 a year … Obama also gave ground on a key Republican demand — applying a less-generous measure of inflation across the federal government. That change would save about $225 billion over the next decade, with more than half the savings coming from smaller cost-of-living increases for Social Security beneficiaries … Obama increased his overall offer on spending cuts and dropped his demand for extending the payroll tax holiday … . But he is still seeking $80 billion in new spending on infrastructure and unemployment benefits and an increase in the federal government’s borrowing limit large enough to avert any new fight over the issue for two years."
"The two sides are now dickering over price, not philosophical differences, and the numbers are very close" reports NYT.
Republican leaders initially reject. Politico: "…Boehner and other top Republicans have already rejected the Obama offer as inadequate, and they disputed some of the savings that the White House was counting in its dollar-for-dollar ratio on spending cuts versus new revenue … Republican aides said the total savings are actually lower than $930 billion because Obama is seeking $50 billion in new infrastructure spending and $30 billion for extending unemployment benefits … It then closes the gap by counting savings on interest payments and using a less generous cost-of-living calculator for government benefits — two elements that the speaker’s office says aren’t cuts … And the president’s request to raise the debt limit for two years is likely to draw GOP resistance."
GOP caucus not expected to put up major resistance to deal, according to Roll Call: "[Boehner] is set to meet with his rank and file for the first time since news leaked that he has put tax rate increases and a one-year debt ceiling increase on the table, and one Republican aide predicted 'some major pushback' … But with time running out before the nation goes over the cliff and public opinion turning against them, some Republicans are cautioning not to read too much into any political theater. 'I think it’ll be a faux revolt,' a Republican lobbyist said. 'They’ll pretend like they’re upset. But they all know he had to do it. Some of them will truly be upset. But far less than the number of votes they’ll lose.'"
Social Security Cut Squarely On Table
Dean Baker slams "Chained CPI" proposal from Obama: "This will lead to a reduction in benefits of approximately 0.3 percentage points annually. This loss would be cumulative through time so that after 10 years the cut would be roughly 3 percent, after 20 years 6 percent, and after 30 years 9 percent. If a typical senior collects benefits for twenty years, then the average reduction in benefits will be roughly 3 percent … The proposed cut in the annual cost of living adjustment will be a substantial hit to a population that for the most part is ill-prepared to see a cut in its income. The effect of this cut on the income of the typical beneficiary will be larger, measured as a share of income, than the return to Clinton era tax rates on the richest 2 percent will be to the people affected."
While Paul Krugman agonizes: "Those [Chained CPI] cuts are a very bad thing, although there will supposedly be some protection for low-income seniors. But the cuts are not nearly as bad as raising the Medicare age, for two reasons: the structure of the program remains intact, and unlike the Medicare age thing, they wouldn’t be totally devastating for hundreds of thousands of people, just somewhat painful for a much larger group. Oh, and raising the Medicare age would kill people; this benefit cut, not so much. The point is that we shouldn’t be doing benefit cuts at all; but if benefit cuts are the price of a deal that is better than no deal, much better that they involve the CPI adjustment than the retirement age. But is this rumored deal better than no deal? I’m on the edge."
MoveOn.org slams proposal. HuffPost: "MoveOn.org, the largest online progressive organization in Washington, reacted angrily Monday night to reports that Obama was softening. The group's quick reaction to a possible deal that has yet to be announced publicly shows there will be fierce opposition to cuts that hit Social Security, Medicare or Medicaid beneficiaries … [MoveOn.org's Justin] Ruben said that his organization would encourage Democrats to block such a bargain. 'If such a deal were proposed by the president and speaker, MoveOn members would expect every Senate and House Democrat to do everything in their power to block it,' Ruben said. 'Senate Majority Leader Reid would play a crucial role, as MoveOn members would count on him and other senators to remain true to their repeated promises to keep Social Security benefits off the table.'"
Obama Taps Biden To Lead Gun Control Effort
Biden to lead effort to draft gun control proposals, as resistance softens. W. Post: "The tentative steps ended a paralyzing debate within the administration over how hard to pursue gun-control legislation, which has been a politically perilous issue for many Democrats … Democratic Sens. Harry M. Reid (Nev.), Joe Manchin (W.Va.) and Mark R. Warner (Va.) made clear that Congress should consider a range of options to address the issue; all three have been strong supporters of gun rights … But any significant gun legislation would require support from leading Republicans, none of whom joined Democrats on Monday in outlining specific changes they might consider."
Protesters target NRA. W. Post: "Chanting 'Shame on the NRA,' the protesters marched from Spirit of Justice Park to the NRA offices on First Street near the Capitol. After observing a moment of silence, the protesters read off the names of the Sandy Hook Elementary School victims. They then read model responses from an NRA questionnaire given to politicians in order to grade them on their adherence to the NRA’s policies."
NRA has the strategy for defeating gun legislation after horrific events. NYT: "Over the years the N.R.A. has perfected its strategy for responding to mass shootings: Lie low at first, then slow-roll any legislative push for a response. After the shootings at Columbine High School in 1999, for example, an effort to close the so-called gun-show loophole, requiring unlicensed dealers at gun shows to run background checks, ultimately died in conference after being stalled for months. After the massacre at Virginia Tech in 2007, Congress did manage to pass a modest measure that was designed to provide money to states to improve the federal background check system. But the N.R.A. secured a broad concession in the legislation, which pushed states to allow people with histories of mental illness to petition to have their gun rights restored."
