President Obama’s February 14th budget proposal for fiscal year 2012 would freeze or reduce funding for many federal programs as part of a strategy to begin reducing the federal deficit. The nation’s major social insurance programs – Social Security and Medicare – appear to have been exempt from such changes, at least for the moment.
The release of the President’s budget proposal is, of course, only the beginning of what will be a difficult and unpredictable negotiating process with a divided and contentious Congress. In the course of negotiations the pledges made this week by the President could be markedly altered, with potentially long-term consequences for the people who rely on these social insurance programs.
Social Security
Under the heading “Secure Social Security,” the President’s budget message states:
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Read More…Since our State has never allowed Compromise and Release in Worker's Comp. I am curious if their are any studies on the impact of C&R on Worker's Comp. This will be a issue of importance in our upcoming legislative session.
Read More…Social Security changes recommended by the co-chairs of the National Commission on Fiscal Responsibility and Reform (NCFRR) on December 1, 2010 include: extending coverage (to uncovered state and local employees); three benefit reductions (affecting the benefit formula, cost of living adjustments, and retirement age); two benefit increases (a new special minimum and a 5 percent boost for longtime recipients); and a revenue increase (lifting the cap on taxable wages). In addition, the recommendation to lower personal income tax rates would reduce revenues to Social Security funds from the taxation of benefits.
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