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Monday, May 30, 2011

Republicans to Reduce 70 Percent of Social Security Benefits

At least 24 Republicans wrote to Obama demanding his administration to make 70 percent cut on Social Security Benefits and other expenses to meet August 2 default deadline.

The GOP legislators stated that Obama administration must draft plans to reduce Social Security, military, and other spending to prevent default on Giethner's August 2 deadline. They proposed reducing SS retirement and Medicare benefits by 70 percent. Also, the government must consider reduction on military operation expenses. If Obama pleads "No" to these suggestions, he can just raise taxes to meet credit obligations.

These are the Republicans’ proposed solution to the debt limit crisis. The GOP legislators wrote these suggestions in response to the Congressional Research Service (CRS) briefing.

The Republicans also commented that Obama's proposed 2012 budget must meet the $2.6 trillion allocation. This amount is the projected revenue of United States by 2012; hence, spending must fall at or below such limit. If done so, the United States doesn't have to borrow money from other countries just to pay bills.

Moreover, the Republicans stated that the $2.6 trillion limit is enough to pay debt interest, provide basic Social Security benefits, and meet necessities. Should the Obama administration continue with its high spending habits, United States can no longer sustain its economy. A dive into recession can be expected after 2012.

As you can see, it's a do or die on August 2. It's either President Barack Obama will take immediate fiscal action or insist impractical reforms. Whether the Republicans are correct in their suggestions, it's clear that the legislators and the administration need to devise an effective solution to rising fiscal debt.

Perhaps the Republicans will agree that military spending and Social Security needs a little sacrifice to help the US economy survive the recession.

For more information on Social Security benefit claims, you may consult a SS lawyer in Los Angeles. You may dial our toll free number at 1-866-772-2889, or email us at for free case analysis.