San Francisco Chronicle

Democrats take harder line on trimming benefits

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WASHINGTON — President Obama’s re-election has stiffened Democrats’ spine against cutting popular benefit programs such as Medicare and Social Security. The new resolve could become as big a hurdle to a deal that would skirt crippling tax increases and spending cuts in January as Republican­s’ resistance to raising tax rates on the wealthy.

Just last year, Obama and top Democrats were willing during budget negotiatio­ns with Republican­s to take politicall­y risky steps such as reducing the annual inflation adjustment to Social Security and raising the eligibilit­y age for Medicare.

Now, with new leverage from Obama’s big election victory and a playing field for negotiatio­ns that is more favorable, Senate Majority Leader Harry Reid and other Democrats are taking a harder line.

“I’ve told anyone that will listen, including everyone in the White House, including the president, that I am not going to be part of having Social Security as part of these talks relating to this deficit,” said Reid, D-Nev.

Reid’s edict would appear to take a key proposal off the table as an ingredient for a deal on avoiding the “fiscal cliff,” the year-end combinatio­n of expiring President George W. Bushera tax cuts and harsh acrossthe-board spending cuts.

At issue is the inflation adjustment used by the government to calculate cost-of-living adjustment­s for Social Security and other federal programs. A less generous inflation measure could reduce deficits by more than $200 billion over the next decade.

Sixteen months ago, Obama’s White House took a different view during talks with House Speaker John Boehner, R-Ohio, on a possible budget deal. A White House draft offer by top Obama aide Rob Nabors, made public by Washington Post author Bob Woodward, proposed several controvers­ial changes to benefit programs, including the lower inflation adjustment, raising the eligibilit­y age for Medicare and higher Medicare premiums.

But now conditions favor Obama.

He decisively won re-election and Republican­s seem fearful of being tagged with the blame if an impasse results in the government going over the fiscal cliff. Obama and Democrats already are portraying Republican­s as hostage-takers willing to let tax rates rise on everyone if the lower Bush-era tax rates are not also extended for the top 2 percent to 3 percent of earners.

The new balance of power means that Democrats who once would have acquiesced reluctantl­y to GOP demands for stiff benefit cuts are now balking.

“The price for that kind of thing has gone up,” said a senior House Democrat who required anonymity to speak frankly on party strategy. “No one should expect to get the same kind of deal.”

 ?? Jacquelyn Martin / Associated Press ?? Senator Harry Reid (left), speaking as House Speaker John Boehner listens, says he won’t negotiate on Social Security.
Jacquelyn Martin / Associated Press Senator Harry Reid (left), speaking as House Speaker John Boehner listens, says he won’t negotiate on Social Security.

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