Monday, February 11, 2013

Senate Sequestration Alternative

Senate Democrats are expected to unveil next week a short-term sequestration replacement bill aimed at combining alternative spending cuts and new tax revenue to avert $85 billion in automatic spending cuts scheduled for March 1, 2013. 

Senior Democrats, including the Chairman on the Senate Committee on Finance, Max Baucus (D-MT), said the final configuration and duration of the replacement measure, including the share that would come from spending and tax revenue, was still under discussion. 
 
Although full details of the short-term sequestration replacement measure have yet to be settled, the likely configuration would be a measure cutting the budget deficit between $112 billion and $120 billion, replacing sequestration through the rest of the 2013 fiscal year and to the end of the calendar year. However, it remains unclear whether the Senate Minority and the House Majority would accept a package containing additional revenue increases as a replacement to sequestration. 
 
President Obama urged Congress on Tuesday to pass a short-term package of spending cuts to avert sequestration that will take place March 1.

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