Senate Democrats Reach Agreement on How to Avoid Automatic Cuts

Before leaving for the President’s Day recess, Senate Democrats reached general agreement on how to avoid the automatic cuts scheduled to take effect March 1st. The $110 billion budget package is evenly divided between new tax revenues and spending cuts.  The spending cuts come largely from farm subsidies and future defense spending after 2015. The majority of the tax revenues would come from a new 30 percent minimum tax on those with adjusted gross incomes over $1 million a year. The Senate is expected to consider the measure when the Senate reconvenes next week.  This approach to avoiding the automatic cuts is not likely to be supported in the House of Representatives.