US Senate Dems unveil $110B budget cut compromise

Hawaii Independent Staff

Senate Democrats are floating a budget compromise aimed to replace across-the-board sequestration.

The Hill reports:

The Senate Democratic package is split evenly between spending cuts and provisions raising new tax revenues, according to a Democratic source.

It would raise nearly $54 billion in taxes by implementing the Buffett Rule, setting a minimum effective tax rate for wealthy individuals and families. It would raise additional revenues by changing the tax treatment of oil extraction from oil sands.

This version of the Buffett Rule would phase in a 30-percent effective rate for incomes between $1 million and $2 million.

The plan would also end tax breaks that incentivize companies to move jobs overseas, raising less than $1 billion.
The $55 billion in spending cuts are evenly divided between defense and non-defense programs. It would save $27.5 billion by eliminating agricultural subsidies and another $27.5 billion though defense cuts.

Senator Hirono’s office signaled her support via an email to the Independent:

“While Senator Hirono would prefer a deal with more revenue and less cuts than what’s in the proposal, she supports it because it’s far better than the harsh, across the board cuts in sequestration and Congress must act urgently to avoid the cuts that would have a large impact on Hawaii.”

Via The Hill »