Monday, December 31, 2012

Fiscal Cliff: GOP Gives In On Social Security Cuts In Stalled Talks

Tense "fiscal cliff" negotiations on Capitol Hill Sunday inched forward slightly as Republican senators agreed to take Social Security cuts off their list of immediate demands.

The cut that GOP leaders had proposed -- picking up on a now-defunct offer from President Barack Obama -- involved basing Social Security cost-of-living adjustments on a chained consumer price index (CPI), which grows more slowly than current measures of inflation and therefore would give seniors less in benefits as time went on.

But Senate Republicans realized in a caucus meeting Sunday afternoon that the idea was a loser for now, even if they might return to it in reaching a larger deal later on. POST

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