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U.S. House Committee on the Budget
President Obama's budget: Last rites for a 'grand bargain'
President Obama's budget: Last rites for a 'grand bargain'

President Obama's decision to drop his pursuit of "chained CPI" -- a less generous method for calculating cost-of-living adjustments to federal benefits and income tax brackets -- sent deficit hawks into an emotional tailspin. For example, Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said, "We are incredibly disappointed to learn that the president has decided to drop his proposal to correct the way in which the federal government measures inflation." The proposal is probably the biggest concession Obama is making to Republicans, even though it in effect raises taxes (by allowing more taxpayers to creep into higher brackets) even as it slows the growth of...

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