How Barack Obama Plans To Cut Social Security Spending By $130 Billion
President Obama released the White House budget today, and the official document gives a much better picture about what his cuts to Social Security would look like in more depth.
The White House plan — as a concession to House Republicans — included a shift in the way the government calculates cost-of-living-adjustments for Social Security and other mandatory spending programs.
What this really means is that the White House budget plan will cut Social Security and other entitlement benefits by a cumulative $130 billion over the next ten years, going against previous promises and infuriating groups that represent retired Americans.
Here are the annual cost-of-living adjustment cuts to mandatory spending. Since most the COLA adjustments to mandatory spending are predominantly manifested in social security.
This isn't a small amount of money, either. The government's savings from toggling CPI begin low — at 0.22% — and then gradually increase to 1.86% of the entire Social Security system. This will have a drastic impact on an individual's cumulative social security checks as long as the policy remains in place beyond the 10 year window.
