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Obama Drops Cuts to Social Security in Debt Reduction Plan

The Obama administration says it has dropped plans for major cuts to Social Security as part of a debt reduction plan to be presented to Congress next week. On Thursday, the White House said President Obama will no longer propose raising the Medicare eligibility age from 65 to 67, as well as cutting Social Security benefits. Obama had agreed to the changes as part of a failed effort to reach a deal with Republicans earlier this summer. The White House, however, is still moving ahead with a call to trim at least $340 billion from Medicare and Medicaid. Obama is also preparing to propose some $800 billion in tax hikes, a red line for Republicans.

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