The Senate passed its March 23, 2013. Titled "A Foundation for Growth: Restoring the Process of American Opportunity," the nonbinding resolution outlines spending and tax priorities for the appropriations process and tax-writing committees and would replace the sequester with an even split between new revenue and spending cuts.
The Senate proposal's focus on revenue is in stark contrast to the, which derives its deficit reduction from deep spending cuts and entitlement reforms.
Independent Sector, along with 20 national nonprofit organizations, sent a letter to members of the Senate Finance and Budget Committees, urging lawmakers to exclude the charitable deduction from a provision that instructs the Finance Committee to identify $975 billion in revenue from limiting itemized deductions, exclusions, and credits.
Highlights of the FY 2014 Senate Budget Resolution
FY 2014 Senate Budget Resolution - Top Line Snapshot
||Discretionary Spending (Base Outlays)
|FY 2014 Senate Budget Resolution
|Current Policy Baseline (FY 2014)||$3.6 trillion||$1.116 trillion||$608 billion|
The resolution proposes to fully replace the remaining $960 billion in the sequester's automatic spending cuts with an equal mix of spending reductions and revenue increases. The alternative measures include:
Taxes / Revenue
The resolution calls provides the Senate Finance Committee with budget reconciliation instructions to identify $975 billion in revenue for deficit reduction from eliminating tax deductions, credits, and exclusions for wealthy Americans and large corporations. The budget proposal does not offer suggestions for which expenditures on the individual income side of the tax code should be considered for elimination or reduction, but it does offer several illustrative approaches that the Finance Committee may consider, including:
The reconciliation process provides Congress an expedited procedure for enacting spending, revenue, and debt policies contained in the budget resolution. Under reconciliation, the budget resolution directs specific committees to draft legislation to implement the desired budgetary outcome – in this case reducing the deficit. The reconciliation process importantly allows for Senate adoption of the final spending package by a simple majority, rather than the normal 60 vote threshold. Additionally, no changes to the Social Security program are permitted under the reconciliation process.
The resolution calls for $975 billion in targeted spending cuts for deficit reduction, including:
The resolution calls for $100 billion in targeted investments in our nation's infrastructure and workforce, including:
Health Care / Entitlement Programs
The resolution calls for maintaining and strengthening many of the health care reforms established by the Patient Protection and Affordable Care Act (PL 112-148)