This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Senate Democrats, GOP To Stage Votes On Rival Cuts

By ANDREW TAYLOR

WASHINGTON (AP) â¿¿ Across-the-board spending cuts all but certain, Republicans and Democrats in the Senate are staging a politically charged showdown designed to avoid public blame for any resulting inconvenience or disruption in government services.

The two parties drafted alternative measures to replace the cuts, but officials conceded in advance the rival measures were doomed.

At the White House, President Barack Obama invited congressional leaders to discuss the issue with him on Friday â¿¿ deadline day for averting the cuts, which would slash $85 billion from the military and domestic programs alike.

Democrats controlling the Senate are pushing a $110 billion plan that would block the cuts through the end of the year. They would carve 5 percent from domestic agencies and 8 percent from the Pentagon but would leave several major programs alone, including Social Security, Medicaid and food stamps, while limiting the cuts to Medicare to a 2 percent reduction to health care providers like doctors and hospitals.

The Democratic plan proposes $27.5 billion in future-year cuts in defense spending, elimination of a program of direct payments to certain farmers, and a minimum tax rate on income exceeding $1 million as the main elements of an alternative to the immediate and bruising automatic cuts, known in Washington-speak as a "sequester."

Republicans were sure to kill the Democratic alternative with a filibuster. They were poised to offer an alternative of their own that would give Obama the authority to propose a rewrite to the 2013 budget to redistribute the cuts. Obama would be unable to cut defense by more than the $43 billion reduction that the Pentagon faces and would be unable to raise taxes to undo the cuts.

The idea is that money could be transferred from lower-priority accounts to accounts funding air traffic control or meat inspection. The White House says such moves would offer only slight relief, but they could take pressure off Congress to address the sequester.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs