The Senate Finance committee is holding a hearing on a $100 million debt-driven budget deal that would end the sequester and increase the tax revenue in the budget for two years.
The deal, which the panel will vote on Tuesday, would have $60 million to increase the revenue over the next two years for a combined $1.3 trillion in revenue.
The bipartisan deal would increase revenue for a budget that has not had a surplus since 2010.
In a statement on the deal, Senate Budget Committee ChairMike Enzi said the Senate had to act to address the fiscal cliff, which would see $1 trillion in tax hikes on the middle class and businesses over the coming years.
“I am committed to protecting our country from this devastating budget cut, and I know that there are many who will not vote for this bill,” Enzi wrote.
“This is a budget deal for the middle and working class.
It will save the government billions of dollars over the long term, while protecting middle class jobs, investments, and incomes.”
Enzi said this was the first time that Congress had voted on a budget and that the Senate Budget Committee would vote on the agreement on Tuesday.
As we reported, Enzi saved the middle class by $1tn by cutting taxes on middle class families and middle-class businesses.
Enz is not alone.
Democrats have already introduced legislation to stop the sequesters cuts to the budget, and a number of Republicans have indicated that they would also vote against the budget deal, including Senate Majority Leader Mitch McConnell (R-KY), House Budget Committee Chairman Jeb Hensarling (R) and Senate Finance Chair Mike Lee (R).
Democrats, particularly Sen. Elizabeth Warren (D-MA), are calling on Congress to vote to end the budget cuts to entitlements, as the sequests cuts to Medicare, Medicaid, Social Security, the Earned Income Tax Credit and the Child Tax Credit will cost seniors a combined $2.5 trillion over the course of the decade.
Warren said on Wednesday that the sequest cuts are “a clear attack on the American dream.
The sequester cuts will cost tens of millions of seniors, and will put families at the top of the food chain.
They will also hurt our economy and lead to job losses for the millions of Americans who rely on food stamps.”
“If we don’t act now, the sequurs cuts will go on unchecked,” she said.
Senate Minority Leader Chuck Schumer (D) is also pressing for a deal, saying that the budget is the last chance for Republicans to save the sequures cuts and that Republicans need to stop cutting programs and pass tax reform to make a deal.
Schumer is calling on Democrats to join the Senate Democrats for Budget Committee, which will meet with Republicans in order to work out a deal.
“If there is any hope for bipartisan agreement on our debt-fueled budget, it will come from the Senate Democrats for budget committee,” Schumer said.
“The budget committee will meet with both sides and get bipartisan support for the deal they have been working on for months.
This will show that Democrats can work together, not just as Republicans, but as Democrats.”
Senate Republicans, meanwhile, are still working on a bill to avoid the sequades cuts and is expected to be unveiled by the end of the week.
A number of senators have indicated they would oppose the budget if it included federal spending cuts to entitlements, which Republicans have argued are the only way to address a budget deficit, which has hit a record $1,846 billion for the fiscal year that begins in October.
Sen. Bernie Sanders (I-VT) told MSNBC that the budget deal is the most important bill that Congress has passed in years.
“This budget deal is a very important step to get us back on track to the job-creation and economic recovery that we all want to see,” he said.