Now part II of my take I'll give my taking on cutting SS and Medicare.
Let me start by saying I would love to just raise taxes on rich people to pay for all these things but that is not happening. Even most Democrats will only go so far. The progressive caucus "back to work budget" which is a liberal's dream only got 84 votes in the House meaning almost 60% of the Democrats didn't vote for it.
So people have got to be realistic. While can offset it some by getting some revenue. The fact is retirement spending is going to crowd out investments in the economy like infrastructure, wise scientific reserach and community colleges that liberals want.
It is actually the non mandatory discresionary domestic spending that does the most to create ladders into the middle class for low income individuals that are willing to work hard for it. It is that spending that is being cut by the sequester along with defense spending.
So I would argue to other liberals that unless we can't elect a progressive majority in both Houses in the near future, which isn't happening. Then we need to do something to protect investments for our future.
Besides lets look at the cuts:
$140 B of 400 B in Medicare cuts is reduced payments to drug companies. Medicare should be getting a discount on drug prices.
Alot of the other savings comes from means testing. Not means testing that ever take away from guarantee of Medicare but some high income seniors may have to pay a higher premium, as will those that choose to buy Medicare Advantage plans. So the poor are spared.
As for chained CPI. Yes it is a cut to Social Security. Basically about 0.3% percent cut per year. Now ideally I would raise the cap to save SS but lets keep in mind that SS is designed as a Senior anti-poverty program and in that respect SS has worked.
While some will see a decrease. There protections for poor and the very old. Some factions potentially see a slight increase. So these chained CPI cuts have no negative impact on increasing elderly poverty and may actually a slight improvement in terms of poverty.
Plus because of Obamacare Seniors will be saving money on their drugs because over the next decade it closes the Donut hole.
Certain Disability and Veterans groups be excempt from the chained CPI cuts.
Chained CPI Protections | The White House