Senator Warner: “Gang Of Six” Close To Debt Reduction Deal, Will Cut Social Security

April 17th, 2011 (2) Posted By Pat Dollard.

The Hill:

Sen. Mark Warner (D-Va.), a member of the Senate Gang of Six budget negotiators, said Sunday on “Face the Nation” that tackling Social Security’s solvency remains on the table for the group.

The Gang of Six is attempting to put the December recommendations of the bipartisan fiscal commission into law. Social Security does not contribute to deficit spending since it draws benefits from a separate trust fund, but the fiscal commission sought to ward off a solvency crisis for Social Security after 2037 by raising the retirement age while reducing benefits.

“Part of this is just math,” Warner explained, noting that the number of ratio of retirees to working age Americans paying into the Social Security system is changing dramatically.

Including Social Security in the Gang of Six package appears to be a concessions by Democrats made in exchange for agreement to raise some revenue by Republicans. But liberals in the Senate and House have made clear they will not stand for any cuts to benefits.

The 2012 budget passed by the House on Friday does not include reforms for Social Security. House Budget Committee Chairman Paul Ryan (R-Wis.) instead called for a trigger in the budget whereby the president and Congress would have to propose solutions once the Board of Trustees certifies the program is in trouble. Presidet Obama in his 2012 budget and in a speech last week did not lay out plans to reform Social Security.

Warner said the Gang is “very close” to an agreement that includes spending cuts and tax increases such as be eliminating the home mortgage tax deduction.

“We are going to make everybody mad with our approach,” he said.

Warner made clear he is opposed to the House Republican 2012 budget’s reliance on cuts to Medicare—he called it a “massive transfer of responsibility onto our seniors”– but he did not say how the Gang of Six will approach the massive entitlement program.

Warner said that last week’s deficit speech by President Obama “laid out his vision, in real stark contrast” to the Ryan plan.

He said that he does not want the past week’s speech and reaction by Republican to distract both sides from compromise.

“What I hope is that this doesn’t devolve into Democrats vs. Republicans,” he said, noting that that led to an 11th -hour fight over 2011 spending that he found embarrassing.

There are three Republicans on the Gang of Six: Sens. Saxby Chambliss (Ga.), Tom Coburn (Okla.) and Mike Crapo (Idaho); and three Democrats: Sens. Dick Durbin (Ill.), Kent Conrad (N.D.), and Warner.

Politico:

Sen. Mark Warner (D-Va.) said on Sunday the “Gang of Six” senators is “very close” to a deal on deficit reduction, suggesting the plan would impact Social Security that most Democrats have said is off limits.

“We’re going to make everybody mad with our approach,” Warner said on CBS’s “Face the Nation,” “because we’re touching every part of the problem.”

Warner, who is part of the three Democrats who are negotiating with three Republicans to reach a bipartisan deal, said the group is “looking at making Social Security more sustainable.”

Asked by host Bob Schieffer to clarify that the group will take on Social Security, Warner said, “Part of this is just math: 16 workers for every one retiree 50 years ago, three workers for every retiree now.”

With President Barack Obama proposing new talks after laying out his vision on the issue last week, and House Republicans passing their own plan, Warner said he hopes the “Gang of Six” will stake out the middle-ground.

Warner said “everything” was on the table, including tax increases, spending cuts and entitlement reforms.

Senate Majority Leader Harry Reid (D-Nev.), however, has repeatedly said that Social Security must be left alone, and Republicans have flatly refused to back any tax increases. So, it’s unclear that whatever plan the group agrees on will gain much traction.

“What I hope is that this doesn’t devolve into a Democrats versus Republicans again,” Warner said, adding that Congress should start with a “bipartisan plan and build out.”

Still, he warned Republicans not to “roll the dice” on the $14.3 trillion debt limit, saying failing to do so would “literally be lighting the match that can burn down the house.”

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  • MiHi

    To these creeps, slashing Social Security to the point where recipients get $500 a month to live on to just having TWO dollars to live on per month is “preserving the program”.

    Yes, technically, Social Security would still exist, but it would be reduced to a horrible parody of it’s former self that would never be able to keep anyone from homelessness and starvation.

  • http://NONE WAYNE COMER

    Sen. Warner from a constituent : 22180“:
    Warner made clear he is opposed to the House Republican 2012 budget’s reliance on cuts to Medicare—he called it a “massive transfer of responsibility onto our seniors”–

    Please take note of the following:

    Senate homeland security subcommittee on federal financial management.

    “Wednesday’s hearing was chaired by Democratic Sen. Tom Carper of Delaware. “When we have estimates of more than $47 billion in overpayments, and potentially tens of billions of dollars in fraud within Medicare and Medicaid, there is a lot of opportunity to improve the way government oversees these vital health care programs,” he said.”