Liberals warn of Democratic schism if Obama backs Social Security cut

By Alexander Bolton - 01/15/11 12:00 PM ET
The Hill

The battle lines are forming within the Democratic Party over the charged question of reforming Social Security in the days leading up to President Obama’s State of the Union address.

Liberals, such as Sen. Bernie Sanders (I-Vt.), and labor unions, such as the AFL-CIO, AFSCME and SEIU, have taken a firm stand against cutting Social Security benefits.

They are still reeling over the deal Obama struck with Senate Republican Leader Mitch McConnell (R-Ky.) in December to extend almost all of the Bush tax cuts and chop the Social Security payroll tax for one year by 2 percentage points.

Some worry that the cut to the payroll tax could set a precedent that is difficult to erase. They expect Republicans will campaign vigorously against allowing the rate to reset from 4.2 percent to 6.2 percent, characterizing it as a tax increase.

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