The proposal would have ruled out tax increases or spending increases in non-defense accounts. No more than half of the presidentís proposed cuts could come from the defense portion of the budget, and defense cuts would have to be consistent with policies established by the fiscal 2013 defense authorization law (PL 112-239).
The Democratic sequester replacement bill would raise $53 billion in additional taxes from top earners over 10 years, according to the Congressional Budget Office.
The measure would require households that earn more than $5 million to pay a minimum 30 percent tax rate, expand an oil tax, eliminate direct payments for farmers and provide funding for agricultural disaster aid and certain farmers who lost income in 2012.
The CBO reported Wednesday that the legislation would add $7.2 billion to the deficit over 10 years, but it also would reduce discretionary spending by $9 billion over the period.
Alan K. Ota and Paul M. Krawzak contributed to this report.
Senate Minority Leader Mitch McConnell, R-Ky., carries a musket on stage as he speaks during the American Conservative Union's Conservative Political Action Conference (CPAC) at National Harbor, Md., on Thursday March 6, 2014.