On February 12, Senate Majority Leader Harry Reid, D-Nev., announced that he plans to introduce a bill that will further delay the drastic defense spending cuts from sequestration scheduled to begin on March 1. Reid said the bill would be funded through a balance of increased taxes on the wealthy and cuts in spending on government programs.
The Senate expects to take up the bill during the week beginning February 25 after Congress returns from its Presidents’ Day recess. The Senate Democrats’ bill is expected to include roughly $120 billion in deficit reduction, much of which would come from imposing the so-called “Buffett Rule” on the wealthy. The Buffett Rule, named after investor Warren Buffett, would implement a tax rate of at least 30% on taxpayers making over $1,000,000 a year.
Sequestration is scheduled to take place on March 1 and Republicans are strongly opposed to any new taxes. Senate Minority Leader Mitch McConnell, R-Ky., has said that the President has already received the tax increases he wanted through passage of the American Taxpayer Relief Act of 2012 and now is the time to get spending under control.
Since there is not much time to debate sequestration between February 25 and March 1, will Congress kick the can down the road once again?
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