- President Obama's re-elected democratic against cutting popular welfare programs, such as medical insurance and social security spinal stiff. They may become the new determination as big as the hurdles of an agreement, will avoid paralysis to increase taxes and spending cuts republicans resistance, in order to improve the tax rate for the rich in January.
In the last year, Obama and the Democrats and republicans top willing to in the budget negotiations to take political risk measures, such as reducing the annual inflation adjust social security and medical insurance qualifications age to be raised.
Now, from Mr Obama's big election win new lever and a fair competition environment more favorable negotiations, in other ways, and senate majority leader Harry Reid (Harry Reid) and other Democrats are tougher.
"I have already said very clearly that I have told anyone who will listen to, including in the White House everyone, including the President, I won't be part of it, part of the social security, these talks about the deficit," Reid, D - peak told reporters.
Reed's law will appear close table as raw materials trade, avoid "wealth cliff take key proposal," President George w. bush's tax cuts expire time year-end combination of comprehensive and harsh spending cuts.
The present question is inflation adjustment by the government to calculate cost living adjustment social security and other federal program. A more relaxed inflation measures, need to consider consumers looking for alternative prices may be more than $20 billion, in the future ten years deficit reduction.
This is a no brain for many budget bookworm, because it means a gradual, not too clear the benefits of growth. It also means more than 10 years of about $7 billion in revenue, because tax bracket account automatic rising inflation will be more small.
This new inflation index, called chain's consumer price index, the budget writer is a magical a panacea. But many of its liberal, who said, the moving new cost - - life measures can reduce about $600 a year the average retiree benefits ten years later to take effect, and means to cut about $1000 a year curse of the 20 years later.
"Think in this way, you stood on the deck of a ship, you in very deep water, they hope you can swim, but they are going to take you around the ankle of log chain", Tom harkin, D - Iowa, the assembly of the rally on Thursday in the senate hearing room a group of free activities. "This is the chain CPI."
16 months ago, barack Obama's White House and the house of representatives speaker John boehner, the Ohio, where possible budget agreement in the process of negotiations have different views on advertisements. Obama's aides to rob Nabors, the White House proposal published the draft of the Washington post "author Bob Woodward, the paper put forwards several controversial welfare programs, including low inflation adjustment, improve the medical insurance qualifications age and higher medical treatment insurance premium.
These negotiations, however, had a fair competition environment, like republicans. This is less than a year of time, Obama self description "shellacking" in the election of 2010 and President desperate to increase government borrowing limit, to avoid government default its debt, should break the financial market. In addition, Obama also facing re-election in 2012.
Now conditions conducive to barack Obama.
He resolutely win re-election, republican seems to be afraid of being marked strange, if the deadlock caused the government fiscal cliff. Obama and the Democrats have described the republican hijackers willing to let rate rise for everyone if have no lower the bush era of tax rate also expanded to 2% of the top, with 3% of the wage earner - those earning more than $200000 individuals and 250000 dollars joint declaration.
The new balance of power, means that the Democratic Party a will connive reluctantly GOP needs stiff cuts in welfare, now is not willing to, such as chain CPI or increase in medical insurance retirement age thoughts, as well as requirements GOP higher tax preference.
"What kind of price going up again, and said:" frankly, the party's strategic needs one does not wish to disclose the name of the senior house Democrats. "Negotiations depending on the situation and decide, anyone should not expect to get the same a deal."
The republicans have already got the news, but insist on higher taxes, collocation and fast growth of the projects, such as medical insurance and medical treatment allowance of the poor and disabled medical care plan cuts. The program is called the "right", because qualifications according to the meeting standards, such as age or income.
"Of the questions in Washington in the tax is not too little, but it costs too much, said:" the senate minority leader MaiKangNaiEr, R - KY. "But in good efforts to make progress, the economy and the government pulled the long-term debt paying ability, be like me so of republicans say, for more than a year, and now our new income meaningful reform, in exchange for due to plan our debt is the main driving force."
New Hampshire senator kerry's ai, said Saturday that on the republican weekly radio address said: "any efforts to solve our financial crisis does not include welfare reform can't seriously."
Can't, says many liberals.
"We will gave a loud, leadership in the house of representatives, in the senate, Obama President:" don't cuts to social security, don't cut medical insurance, don't cut medicaid ", "vermont senator Bernie saunders, said: since announced and the democratic socialist. "Every now and then elected consequences, and we win."
Republicans, even some of Mr Obama's Allies fear, free demand will make them more difficult the President and the republicans seal bargaining.
D -, Congressman mike high-graded gayle said, his party's the basis of freedom and borna some conservative republicans, Obama have the same problem. "Borna inappropriate inclined produced far things, his folks and the President also have the same type of person is terrible problem of the unreasonable," said gayle Krishna.
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