The Hill has a helpful piece today on the current state of play in the debt negotiations.
Some of the main points:
- Medicare and Medicaid
- "A fundamental change that has been discussed is means testing Medicare, which would lower benefits for wealthy beneficiaries. This would would alter the entitlement program, revamping its long defined-benefit structure."
- Social Security
- Despite the Dems' resistance to including changes to Social Security, "the only way Obama might get Republicans off their tax message is to embrace changes to Social Security. Raising the retirement age is considered by most Democrats as a benefit cut, and would spark a huge backlash from the AARP."
- Tax loopholes and reform
- "Republicans now say they want to close tax loopholes, though stress that money saved must be used to cut taxes, not reduce the deficit. This position -- consistent with the Americans for Tax Reform tax pledge -- was flatly rejected by Sen. Charles Schumer."
- "One idea that emerged this week is taking "loophole" money and address the alternative minimum tax (AMT), a tax that has long bedeviled lawmakers. From a public relations perspective, both parties could hail the end of loopholes to protect the middle class from the AMT. Another plan that has gained traction is lowering the corporate tax rate, which was pushed by former President Clinton earlier this week."
- Balanced budget
- "To some on the right, getting this in the deal is a must. They contend that it could pass if Obama backs it, bringing along Democrats on Capitol Hill."
- Defense spending
- "The politics of war are not what they used to be, with some Republicans in Congress calling for an end to U.S. involvement in these wars/conflicts. Republican leaders are torn on this issue between their defense hawks and fiscal hawks."
You can read the whole article here.
Comments