Obama to propose changes to Medicare and Social Security in new budget

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President Barack Obama’s upcoming budget will include proposed changes to Social Security and Medicare plus some new tax increases, changes that are an effort for the president to reach a deficit deal with Republicans, according to senior administration officials.

The budget will include an offer Obama made to House Speaker John Boehner in December, officials said. That proposal included $400 billion in savings to Medicare over 10 years.

“The President’s budget to be presented on Wednesday will show how we can invest in the things we need to grow our economy, create jobs and strengthen the middle class while further reducing the deficit in a balanced way,” a senior administration official said.

For Social Security, Obama plans to propose a switch to a key Republican request called “chained CPI,” which is an inflation formula.

Proponents say chained CPI is a more accurate way to measure inflation than the way it’s done now, which they say overstates growth in consumer prices.

Some critics have said chained CPI is not a better way to measure inflation for Social Security recipients, because they spend so much on health care, which rises faster than inflation.

Other highlights:

– The new budget would lead to $1.8 trillion in savings in 10 years and replace the forced budget cuts that took effect on March 1, also known as the sequester.

– The budget includes funding for initiatives that Obama outlined in his State of the Union address, including universal access to prekindergarten education. That move would be paid for by increases to cigarette taxes.

-The plan would also close a current loophole that allows people to collect disability and unemployment benefits at the same time, a move that could create savings for the government, officials said.

Obama’s budget was due in February. Previously White House officials would only say the budget was coming the week of April 8, without revealing a specific date. Republicans were sharply critical of the delay, which came after protracted negotiations over spending cuts and tax rates.

™ & © 2012 Cable News Network, Inc., a Time Warner Company. All rights reserved.

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  • Anu

    The budget should take care of the people below poverty line and people in the lower income group, say having income less than $50,000. The income tax should be nil for income below $25,000 and 5% between $25,000 and $50,000.

  • I.C. Idiots

    Glad to see he's helping the poor. No cuts for the wealthy pigs. Go Obama! That's why we voted you in. As for the rest of you…enjoy the next few years. LOL!

  • Cecilia

    Obama already stole our money from social security for his health plan. Look at the Republicans states they are doing better than the Democrat states. All this president wants to do is tax, and tax us. And the supreme justice did not help with Robert’s appoving this. For all the things he has been doing ruining our country he has been blaming Bush, and he cannot blame him now, so now he is blaming the Republicans. Obama and the justice need to be impeach. Obama breaking our laws and the justice for not protecting our laws.

  • keeping real

    WTF people??? i guss keeping thing how they used to be and for illegals they cannot recieve any benefits from government cause they are illegals, trish your are a moron and pig!!

  • cougar V

    i am sick and tired of people living off the backs of the government and working(middle) class people. theres no way a person should be recieving a disability check and medicaid card for being an alcoholic or being depressed. drinking is a choice and working class people should always be depressed because thay cant enjoy their money because some kind of tax is always coming out their check to provide for these lazy people. if i was Obama i would implement a plan to make sure that if recieve any kind of public assistance there will be a short plan whereas you must have found employment within a year of recieving the assistance or in school full-time while recieving the assistance. after such time if you have not gotten up on your feet ….too darn bad

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