Quantcast
Connect with us

Buffett Rule included in Senate Democrat’s plan to avert looming sequester

Published

on

Senate Democrats unveiled a plan Thursday to avert billions of dollars in looming budget cuts, but Republicans are opposed to raising new revenue amid pessimism over meeting a March 1 deadline.

The plan aims to raise half of the $110 billion needed this year to replace the mandated cuts to defense and domestic spending known as the “sequester” that also calls for raising new revenue.

ADVERTISEMENT

The so-called Buffett Rule, which would require a 30 percent minimum tax on millionaires, would raise most of the $55 billion on the tax side.

The sequester replacement would also include “modest reductions” in the level of defense spending over a decade, amounting to $27.5 billion in savings, while an equal amount would be saved by ending agriculture subsidies to farmers known as direct payments.

“Today, Senate Democrats offered a balanced plan to avoid across-the-board budget cuts that will hurt kids, seniors and our men and women in uniform,” White House spokesman Jay Carney said in a statement.

“Now, Republicans in Congress face a simple choice. Do they protect investments in education, health care and national defense, or do they continue to prioritize and protect tax loopholes that benefit the very few at the expense of middle and working class Americans?”

ADVERTISEMENT

Lawmakers and the White House have struggled to strike a deal to slash some $4 trillion from the swelling national debt.

They failed to reach agreement on a comprehensive package to avert the so-called “fiscal cliff” by December 31 last year, opting instead for tax hikes on annual income above $400,000 and a two-month delay on the sharp cuts.

This new deal “is just to get us through the end of the year, that’s all it is,” Democrat Tom Harkin told reporters.

ADVERTISEMENT

Republican senators have offered plans of their own, including one that would save billions by relying on attrition of the federal workforce. And the Republican-led House passed sequester-replacement legislation last year that focused on targeted spending cuts.

But Democrat Patty Murray, chair of the Senate Budget Committee and the pointwoman on the new plan, said some Republicans appear resigned to allow sequestration to come into force.

“We are putting forward a responsible plan; the Republicans are saying ‘no, let (sequestration) take effect,'” Murray said.

ADVERTISEMENT

House Speaker John Boehner declined to comment specifically on Murray’s plan, saying his party would look closely at any bill that passes the Senate.

But he has previously suggested that a bill with tax increases would go nowhere in the House, and said the nation was likely to face the steep cuts come March 1.

“The sequester will be in effect until there are cuts and reforms that put us on a path to balance the budget in the next 10 years, period,” Boehner told reporters.

ADVERTISEMENT

Economists and groups like the Center on Budget and Policy Priorities have warned that such drastic steps would require a shutdown of parts of the government and cause severe damage to the economy.

Democratic Senator Ben Cardin acknowledged “we’re not close” to striking a deal that could get backing from Republicans, and that “it’s very likely that we will get to March 1st without a resolution.”

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and legal efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. And unlike other news outlets, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from billionaires and corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you. Click to donate by check.

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



Report typos and corrections to: [email protected]. Send news tips to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

White House spokesperson ridiculed for ‘pathetic’ spin on Trump’s trade war admission: ‘Does she think we believe that?’

Published

on

Hours after Donald Trump blithely admitted that he had "second thoughts" about his trade war with China that has damaged the U.S. economy and helped set the stage for a possible recession, White House spokesperson Stephanie Grisham was forced to issue a clarification about the president's comments.

Addressing Trump's G7 response about his tariffs, widely interpreted by the press as expressing some regret, Grisham issued a statement saying the president meant that he wished he had increased his market-destroying tariffs even more.

"The President was asked if he had ‘any second thought on escalating the trade war with China,'" White House press secretary Stephanie Grisham relayed. "His answer has been greatly misinterpreted. President Trump responded in the affirmative - because he regrets not raising the tariffs higher."

Continue Reading

Breaking Banner

Here is why Trump is obsessed with Greenland

Published

on

They say that history repeats itself, first as tragedy, then as farce. Remember that President Harry Truman tried to purchase Greenland in 1946; now, in 2019, President Donald Trump is trying to do the same thing.

This article first appeared in Salon.

To be clear, Trump’s farcical, “absurd” idea — to borrow the adjective used by Danish Prime Minister Mette Frederiksen — is not happening, and was never going to happen. As Frederiksen pointed out, Greenland is “not for sale." Trump, for his part, has not backed down from the idea.

Continue Reading
 

2020 Election

Iowa’s Steve King facing ouster because his campaign is broke and his allies have fled: report

Published

on

Iowa Republican Steve King is facing losing his seat representing his district in the U.S. House of Representatives as his campaign finds itself broke and the Republican Party has turned its back on him after his latest round of controversial comments.

According to a report from the Daily Beast, his campaign is struggling to bring donors -- who once wholeheartedly supported him --back into the fold.

Even worse, his colleagues in Congress have also abandoned him.

Continue Reading
 
 

Thank you for whitelisting Raw Story!

As a special thank you, from now until August 31st, we're offering you a discounted rate of $5.99/month to subscribe and get ad-free access. We're honored to have you as a reader. Thank you. :) —Elias, Membership Coordinator
HELP US UNCOVER CORRUPTION!
close-link
close-image