Democrats on Wednesday will unveil a U.S. budget blueprint that attempts to slice federal deficits by $1.85 trillion over 10 years through a mix of spending cuts and tax increases on the rich, according to a Democratic source.
The fiscal plan, which will be debated by the Senate Budget Committee this week, is the Democrats' answer to a Republican budget set forth in the House of Representatives that claims to reach balance in 10 years through deep cuts to domestic programs and without any tax increases beyond those approved on Jan. 1.
The plan authored by the Senate Budget Committee's Democratic chairwoman, Patty Murray, would raise $1 trillion in new taxes over the next decade — mainly by targeting upper-income Americans and tax breaks for corporations. The plan also seeks to cut spending by roughly the same amount in order to shrink — but not eliminate — the current $1.1 trillion annual deficit.
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But it also includes $100 billion in stimulus spending on roads and other infrastructure, according to details released by Senate Democrats.
If approved, it would be the first budget resolution passed by the Senate since 2009.
"While House Republicans are doubling down on the extreme budget that the American people already rejected, Senate Democrats are going to be working on a responsible pro-growth budget that reflects the values and priorities of middle class families across the country," Murray said in a statement.
Murray's budget would also include $975 billion in spending cuts. Some $493 billion of these would come from domestic spending, including $275 billion in healthcare savings. The budget would cut $240 billion from defense spending and include a $242 billion reduction in interest payments.
The budget plan is not expected to reach balance during the 10-year budget window. Senate Democratic aides said earlier that Murray's goals were to shrink deficits to sustainable levels and bring stronger growth to the economy.
But added to previous deficit reduction in the 2011 Budget Control Act and January's fiscal cliff tax increases, Democrats claim Murray's budget will shrink the deficit by $4.25 trillion, exceeding a 2010 fiscal commission's prescription for $4 trillion in 10-year budget savings.
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