WASHINGTON — President Barack Obama is proposing cuts to federal Social Security pensions as an attempt to compromise with Republicans on long-running budget battles.
A senior Obama 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 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 John Boehner, speaker of the House of Representatives, last year.
In exchange, Obama wants higher taxes on wealthy earners.
The official spoke on a condition of anonymity since the budget has yet to be released.