The millionaire’s surtax proposal has been dubbed “the Buffett rule,” for billionaire investor Warren Buffett, who has called for higher taxes on the wealthy.
More revenue would come from eliminating corporate deductions related to moving jobs overseas.
The spending cuts would come from $27.5 billion in reduced spending on defense through 2021 and $27.5 billion from ending direct agriculture payments.
Appropriations Chairwoman Barbara A. Mikulski of Maryland said defense cuts would come “over a nine-year period starting in 2015, after we’ve brought troops back home.” The cuts would amount to about $3 billion in fiscal years 2015 and 2016, and then would rise slowly to a high of about $5 billion in fiscal 2021.
Reid’s proposal drew strong support from a number of Democrats such as Armed Services Chairman Carl Levin of Michigan and Environment and Public Works Chairwoman Barbara Boxer of California.
“I am confident we would have the majority if not the totality of the Democratic Party,” said Mikulski.
The savings on agriculture echo plans that were included in the farm bill that passed the Senate last June, 65-34. The bill included $24 billion in cuts from elimination of direct payment subsidies, streamlining programs and curbing food assistance waste.
Agriculture Chairman Debbie Stabenow of Michigan vowed to renew her push for the cuts, after they were omitted from the fiscal-cliff deal brokered by Vice President Joseph R. Biden Jr. and McConnell. The measure extended provisions of the 2008 farm law (PL 110-246) through fiscal 2013.
Direct payments have been strongly defended by some Southern senators, however, including Sen. Saxby Chambliss, R-Ga.
Reid faced heavy pressure from his party’s liberal wing to rely more heavily on taxes on the wealthy or on overseas operations of companies. But he stuck with an even split between tax hikes and spending cuts.
Rep. Chris Van Hollen, D-Md., the ranking Democrat on the House Budget Committee, introduced a separate sequester replacement measure in the GOP-controlled House, one he said is “consistent with the Senate proposal” but would bring some $120 billion in savings.
Rep. Bill Cassidy has his blood drawn by Alesha Barbour during a free hepatitis screening in the Rayburn House Office Building hosted by the Congressional Viral Hepatitis Caucus to recognize "National Viral Hepatitis Testing Day."
Roll Call has launched a new feature, Hill Navigator, to advise congressional staffers and would-be staffers on how to manage workplace issues on Capitol Hill. Please send us your questions anything from office etiquette, to handling awkward moments, to what happens when the work life gets too personal. Submissions will be treated anonymously.