Obama Proposes Cuts To Social Security

The fiscal 2014 budget proposal released by President Barack Obama includes cuts to Social Security.  The budget plan would replace the way current Social Security and disability cost of living (COLA) increases are calculated, replacing them with a chained Consumer Price Index (CPI).  The result could potentially reduce Social Security and disability payments.  Other legislators, including Democrats, have opposed the cuts.  Senator Tom Harkin of Iowa proposed to increase Social Security benefits by about $70 per month by increasing the payroll tax.  That proposal, The Strengthening Social Security Act of 2013, would expand benefits by strengthing the program’s future and aiming to make retirement more secure.  It will be interesting to see how these proposals play out over the next year.