Senate Democrats have proposal to delay Sequestration
Multiple media outlets are reporting that Senate Democrats have reached an internal deal to forestall mandatory budget cuts for ten months. The deal would eliminate mandatory budget reductions established in the Budget Control Act of 2011 for the rest of the calendar year while Congress works out a longer-term deal. While all the details about the deal were not immediately available, cuts from farm subsidies and future defense spending would account for the bulk of the savings. The majority of the tax revenues would come from a new 30 percent minimum tax on gross incomes over $1 million a year. Republicans have not responded to the proposal, but media reports predict that they will reject the proposal, as it contains multiple proposals that they have opposed in the past. Both the House and the Senate will be in recess next week for the President's Day holiday and it is unlikely either chamber will act on the proposal before the week of February 25. For news reports on the package, click here or here.