Senate Democrats are planning to propose a measure that closes tax loopholes targeting corporate stock options and deductions on carried interest—a plan that President Obama mentioned last night in an interview prior to the Super Bowl.The proposal, introduced by Sen. Carl Levin, D-MI, is estimated to raise at least $200 billion over ten years, and could be tacked onto a broader effort to avert the massive sequestration cuts slated to slash the domestic and defense budgets on March 1. - Read more at Bloomberg
PREPARE FOR ANOTHER FISCAL CLIFF Democrats and Republicans are gearing up for another fiscal battle filled with political brinkmanship over the massive sequester cuts set to take effect in March. The Fiscal Times’ Eric Pianin reports “Democrats will press for additional tax hikes on wealthier Americans, even though Republicans declared that option was off the table.… And while many Republicans adamantly oppose the automatic sequestered cuts in defense, some apparently prefer them to the alternative of higher tax revenue through loophole closings.” - Read more at The Fiscal Times
HOUSE GOP PRESSURES WHITE HOUSE WITH BUDGET BILL The House Rules Committee will discuss a measure this evening proposed by Republicans, which requires President Obama to provide a timeline of when the government would hit a surplus. Under the measure sponsored by Rep. Tom Price, R-GA, if Obama submits a 2014 budget that doesn’t produce a balanced budget over ten years, he would then be required to submit a second budget that estimates when the budget deficit will be eliminated. The House is expected to vote on the measure as early as Wednesday. But don’t expect it to be considered by the Democrat-dominated upper chamber. See the bill here
