–House Speaker Pelosi Takes Hard Line Against Social Security Changes
–House Majority Leader Hoyer Says All ‘Options’ On The Table

By John Shaw

WASHINGTON (MNI) – It may not be an overstatement to say the most
consequential, if muted, fiscal debate this year is taking place within
the ranks of the House Democratic leadership.

In separate briefings this week, House Speaker Nancy Pelosi and
House Majority Leader Steny Hoyer provided very different signals about
what Democrats are willing to consider to help turn around the U.S.’s
dark fiscal situation.

Speaking about two hours ago, Pelosi said that she strongly opposes
increasing the Social Security retirement age, even as part of a broad
effort to confront long-term fiscal challenges.

“We should not balance the budget by raising the Social Security
age,” Pelosi said at her weekly briefing.

She said that ensuring the long-term solvency of Social Security
and balancing the federal budget are distinct issues which should not be
joined.

Pelosi said there are “many ways” to implement long-term deficit
reductions. “Let’s not start by raising the retirement age,” she said.

At his weekly briefing on Tuesday, Hoyer also said that he opposes
plans to privatize Social Security, but hinted he is open to possible
adjustments in the program, including increasing the eligibility age.

The goal of Social Security reform “ought not be privatization. It
should be stabilization,” he said.

Hoyer said policymakers should consider “all options” to address
the nation’s serious fiscal problems, including entitlement and
discretionary spending reforms and tax changes.

In a heavily promoted speech last week at the Center for American
Progress, Hoyer said that reducing budget deficits over time will
require a careful examination of discretionary and entitlement spending
as well as the entire tax code.

House Minority Leader John Boehner has said this summer that
increasing the age of Social Security eligibility should be part of a
broader fiscal debate.

** Market News International Washington Bureau: (202) 371-2121 **

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