Updated Monday, July 28, 2014 as of 6:25 AM ET
Practice - Retirement Planning
Obama to Drop Proposal to Limit Social Security
by: Roger Runningen and Richard Rubin
Friday, February 21, 2014
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(Bloomberg) -- President Obama will emphasize Democratic priorities in his next budget, dropping an offer to trim the growth of entitlement spending and proposing new tax limits for U.S.-based multi-national companies.

In an election-year spending blueprint to be sent to Congress March 4, Obama is leaving out a proposal to reduce cost-of-living adjustments for Social Security and other benefit programs, while adding $56 billion for domestic and defense programs and seeking more revenue through taxes. The budget seeks new limits on companies’ ability to take advantage of gaps between countries’ tax rules, administration officials said.

The details released yesterday indicate that Obama isn’t counting on reaching a so-called grand bargain with Republicans in Congress to reduce U.S. debt and will press ahead with spending plans for education, job training and research that he says will bolster middle-income Americans.

“There was a point in time when there was a little bit more optimism about the willingness of Republicans to budge on closing some tax loopholes, but over the course of the last year, they’ve refused to do that,” Josh Earnest, a White House spokesman, said yesterday.

Republicans put the blame for the impasse on the White House. Obama’s decision on cost-of-living increases for government programs shows he “has no interest in doing anything, even modest, to address our looming debt crisis,” Brendan Buck, a spokesman for House Speaker John Boehner, said.

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