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Commission Votes to Put Squeeze on Middle Class and Future Retirees

Plan would raise Medicare premiums, retirement age

Deficit Vote

From left to right, Alan Simpson and Erskine Bowles, co-chairs of President Obama's deficit commission, and David Cote, CEO of Honeywell International Inc. — Andrew Harrer/Bloomberg/Getty Images

AARP Executive Vice President John Rother says the proposals will be more like a menu for lawmakers to choose from, even though they won't vote on the total package. The fact that the report got support from both parties, he says, "would seem to indicate these are not simply going to be dismissed, but that these ideas would be taken seriously."

Democrats control the Senate and White House while Republicans will take the majority in the House in January. Former Sen. Alan Simpson, a Wyoming Republican and co-chairman of the panel, warned people to hold on tight next year when a wave of Republican freshmen dedicated to shrinking government get to town. Simpson said their strong feelings will make for some interesting votes on issues like raising the nation's debt limit.

Edward Coyle, executive director of the Alliance for Retired Americans, says the new GOP majority will push for portions of the deficit plan like raising the Social Security age and lowering overall income tax rates. "Some of it has a much easier shot at getting passed than the whole package," says Coyle, who opposes the changes to Social Security. "We need to be vigilant."

AARP CEO A. Barry Rand said he'd like to see changes to the package as it is weighed.

"Our members are very concerned about the retirement prospects for their children and grandchildren, and believe that lowering Social Security income and increasing health and long-term care costs are the wrong approach, one that would lower the standard of living in retirement for future generations," Rand said.

Tamara Lytle is an award-winning Washington-based journalist.

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