Saturday, February 9, 2013

Senate Democrats Sequester Offer Contains $120 Billion In Savings Over 10 Months

Senate Democrats will produce a bill next week to stave off the sequester-related spending cuts until the end of December, multiple Senate sources tell The Huffington Post.

The bill would cut the deficit by $120 billion over 10 years to help replace the roughly 10 months' worth of sequestration. Approximately $55 billion would come from revenue hikes and a slightly larger amount than that would come from spending cuts. The rest would be made up of interest savings.

The goal, said one aide, is to introduce the bill by Thursday so that it can be presented to the full caucus, who will be able to discuss it back home in their districts during the congressional recess. That date, however, is "flexible."

The contours of the bill are still fluid but two sources agreed to detail the current state of discussions on condition of anonymity.

The revenue raisers would be derived from the implementation of the so-called Buffett rule, which sets a minimum tax threshold on millionaire income. That would raise an estimated $47 billion over 10 years. POST

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