Democrats to announce how to avoid Sequester
The Democrats in the Senate will announce a plan that has been long awaited that will avert the sequester. On Thursday, Senator Patty Murray from Washington will announce the plan for the Democrats. The plan would replace for the rest of 2013, the 10-year sequester. It would include new tax revenue and $120 billion worth of spending cuts, split 50/50.
The majority of revenue would be from implementing the so-called Buffet Rule, named for Warren Buffet the fame investor. The rule caps loopholes and deductions for millionaires to make sure they are paying a minimum of 30% of their income in taxes. Last year, the Democrats tried to pass the Buffet Rule but failed.
Spending cuts are to come from lowering the defense budget, but not as drastically as it would be by the sequester and through eliminating the agriculture subsidies.
Last year, the Republicans in the House passed legislation replacing most of the cuts for the defense department in the sequester that included more cuts domestically like lowering the food stamp program and lowering federal workers’ pay.
President Obama, in his Tuesday night State of the Union address said the plan proposed by Republicans was just preventing defense cuts by making bigger cuts to job training and education as well as social security benefits and Medicare, which is even a worse idea.
People are starting to worry, as the sequester is just two weeks away and next week Congress is not in session. The longer this situation goes forward, the more it will effect financial markets worldwide and pull down the economy.