CQ NEWS
Dec. 13, 2012 – 6:47 p.m.
Resisting GOP Calls for Cuts, Democrats Dig in Against Entitlement Reductions
Confident that taxes on high-income earners will go up even without a large bipartisan fiscal agreement, Democrats are digging in against Republican demands for further spending cuts.
GOP leaders are beating the drum for a reduction in domestic spending, with House Speaker
But the calls haven’t succeeded in breaking through the seemingly solid resistance against cuts in popular programs such as Medicare, and top Democrats said Thursday that they have no plans to discuss concessions on spending, at least not until Republicans accept a tax rate increase on upper-income earners.
“We have the political high ground. There is no question about it,” said Sen.
With tax rates going up next year absent congressional action, a growing number of GOP lawmakers have said they would accept higher tax rates on high-income earners in return for changes to entitlement programs. Other Republicans have suggested simply passing a tax cut for the middle class but nothing else, with the hope of extracting spending cuts next year during a confrontation over raising the debt limit.
Schumer said Democrats should not consider wide-ranging measures to overhaul entitlement programs until Republicans endorse them first.
“The Republicans say there ought to be spending cuts, but they don’t put a single specific on the table,” Schumer said. “Now, what does that say? That says they know that the kinds of things they’re advocating might not be very popular.”
Democrats say the president has already shown a willingness to cut entitlement programs, although the emphasis would be on targeting providers rather than beneficiaries.
Rep.
“I think you could get to the president’s number of $600 billion” in spending cuts in a deal, said Van Hollen, the ranking Democrat on the House Budget Committee. But Republicans want more spending reductions.
Although House Republican leaders have not publicly backed specific ideas, they have been pushing Obama to accept an increase in the eligibility age for Medicare, to 67 from 65, and a reduction in cost-of-living benefits for Social Security recipients. Obama tentatively endorsed both proposals as part of failed debt ceiling negotiations with Boehner last year. Requiring wealthier Medicare beneficiaries to pay higher premiums is another oft-discussed way to target entitlement programs.
Senate Majority Whip
Durbin, a close Obama ally, later said that was a rumor and that it had not come from the White House. Still, he said he opposed an eligibility-age boost and was skeptical of working to overhaul Medicare and Social Security in the waning days of the lame-duck session.
Resisting GOP Calls for Cuts, Democrats Dig in Against Entitlement Reductions
“To try to make entitlement reforms now, in five days? I get nervous,” Durbin said. “Before we start moving on any substantive policy changes, for goodness sakes, let’s think it through and look at it in a larger context.”
More than 80 House Democrats signed a letter sent to Obama on Thursday, urging him not to raise the Medicare eligibility age as part of an agreement to steer clear of the fiscal cliff.
With House GOP leaders declining to spell out their demands on entitlement programs, many rank-and-file Republicans say only that they want a deal that makes “structural reforms.”
“I’ve got one negotiator. It’s the speaker, and I’m going to let him negotiate that,” said Rep.
Lankford added that he wanted “actual spending reductions, not discretionary cuts five years from now.”
With congressional Democrats loath to support the changes to entitlement programs sought by Republicans, Rep.
“At the end of the day, we don’t know if the president can produce Democratic votes for what’s necessary for a deal,” he said. “The president is going to have to produce sizable numbers of Democrats, just as the speaker will have to produce sizable numbers of Republicans.”
Rep.
“When a deal finally comes down, we’re going to complain about the tax increase and they’re going to complain about the reforms to Medicare,” he said.
Paul M. Krawzak and Sam Goldfarb contributed to this story.