Limits on Pensioners’ Raises Studied
President Clinton is considering a proposal to limit cost-of-living increases for the nation’s 41 million Social Security recipients, a spokesman said Thursday.
White House Communications Director George Stephanopoulos told a news briefing that the proposal was one of the options under consideration by Clinton as he prepares a comprehensive economic recovery package.
“It’s one of the issues that’s being discussed,” Stephanopoulos said. “We haven’t made any final decision yet.”
Freezing or reducing Social Security benefits would likely run into strong opposition in Congress. Two senators from Clinton’s own party--Daniel Patrick Moynihan (D-N.Y.) and Donald W. Riegle Jr. (D-Mich.)--came out against a cost-of-living change Thursday.
“Let me make clear that such a proposal is unacceptable,” said Moynihan, new chairman of the Senate Finance Committee.
Many economists believe that cutting entitlement programs is one of the few ways to reduce the federal budget deficit significantly.
Social Security recipients have received an automatic cost-of-living adjustment (COLA) every year since 1975.
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