Senate Democrats Reveal Details Of Their Own Budget

SAHIL KAPUR MARCH 12, 2013, 1:11 PM

In an attempt to draw a sharp contrast with House Republicans, Senate Democrats on Tuesday revealed important details of their own upcoming budget resolution — their first in four years — which represents a return to the negotiating position President Obama adopted after his re-election in November.

The topline figures, according to a Democratic source familiar with the plan: $975 billion in targeted spending cuts, including the repeal of sequestration, and $975 billion in new revenue attained by closing tax loopholes on upper incomes. Combine that with $100 billion in new spending for a jobs package and the plan reduces the deficit by $1.85 trillion.

The target largely mirrors President Obama’s November proposal to find $1.6 trillion in additional revenue. He banked $620 billion in the fiscal cliff deal and the Democrats’ proposal achieves the rest by closing tax loopholes and deductions that benefit wealthy Americans and big corporations.

The spending cuts are divided up this way: $493 in domestic savings, including $275 in health care cuts that the Democratic source said would not harm seniors or families. Defense spending would be cut by $240 billion in accordance with troop drawdowns from overseas operations. An additional $242 billion in savings come from reduced interest payments.

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