By Katelyn Long, Reporter
President Barack Obama’s budget proposes a reduction in social security and Medicare benefits.
It includes $1.2 trillion spending cuts and tax increases for the wealthy with $130 billion cuts to social security payments, and $400 billion cuts to Medicare and other health care programs, over 10 years, according to Huffington Post Politics.
Social security is a government system that helps retired seniors financially. It’s based on credits for the amount of years worked and amount of money put aside for the system which determines retirement benefits.
Medicare is also a part of the social security system and is health insurance for seniors or individuals with disabilities.
Obama proposed these reductions before in the December discussions of the fiscal cliff with Speaker of the House John Boehner without success.
The proposal aims to reduce the United States high deficit that is adding up national debt. Democrats responded with a petition against the budget cut and Republicans opposed the tax increase.
“His first motivation is a peace offering to Republicans who are interested in bringing debt level down in our country. (Second motivation is to be) practical. How Social Security is structured is currently viable for our country,” U.S History and Government teacher Heidi Schmitt said.
According to the National Academy of Social Insurance, many seniors rely on Social Security as income. One-third of seniors rely on Social Security for 90% percent or more for their income, and two-thirds rely on it for more than half their income.
“They will have to make small cutbacks in their lifestyle,” Schmitt said.
When working teens retire, they will see a loss in social security funding. Projections show that current benefits for Social Security could be reduced by 25% percent beginning around 2060 according to themondaymorningeconomics.com..
Schmitt said this is one small step which opens doors to cuts and changes for social security in the future.
This is the first time a Democratic President decided on reductions for these two administrations in his Presidential budget. This budget will be the base of further cuts in government negotiations.
“(This is) not the last we’re going to see with this issue. Keep an eye on the news, not only on Obama’s administration but in future presidencies,” Schmitt said.