Sen. Angus King (I-Maine), a member of the budget conference committee, on Tuesday released a proposal that replaces roughly half of the sequestration scheduled through 2021 with savings from mandatory spending and revenue from ending corporate tax expenditures.
The plan calls for $455 billion in mandated cuts to be replaced by $200 billion in revenue from closing corporate tax loopholes, and $255 billion in savings from entitlement reforms. The plan also calls for smoothing out the sequester cuts, slowing their growth in earlier years and increasing them in later years to achieve the same amount of deficit reduction.
King, who named his proposal the “Grande” plan after Starbuck’s middle-sized cup, represents the “middle-of-the-road” approach to fiscal policy that has been sorely lacking in Washington over the last few years.
To attract support from both parties, King also calls for lower corporate tax rates and increased infrastructure spending. These would be paid for by $325 billion in revenue from ending certain corporate tax expenditures, which are subsidies built into the tax code....