McConnell: Sequester will happen

McConnell: Sequester will happen

Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellMcConnell expects Paul to return to Senate next week Former Hill staff calls for mandatory harassment training Gaming the odds of any GOP tax bill getting signed into law MORE (R-Ky.) said Tuesday that $85 billion in automatic spending cuts will likely go into effect on March 1 despite opposition in both parties.

President Obama has demanded that at least some of the cuts be turned off, but McConnell said Democrats and Republicans were unlikely to reach a last-minute deal.

“It is pretty clear to me that the sequester is going to go into effect,” he told reporters.

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McConnell in the past has worked with Vice President Biden to broker deals between the White House and congressional Republicans, but he indicated no interest in doing so to prevent the cuts.

“Read my lips: I am not interested in an eleventh-hour negotiation,” said McConnell, who acknowledged an “eerie similarity” to previous debates.

McConnell’s comments are the biggest sign yet that the $85 billion in cuts will not be avoided. Speaker John BoehnerJohn Andrew BoehnerThe two-party system is dying — let’s put it out of its misery One year later, neither party can get past last year's election White House strikes back at Bushes over legacy MORE (R-Ohio) has likened the sequester to a “meat ax,” but argued House Republicans would not eradicate the cuts unless Obama agreed to meaningful spending reductions to replace them.

Some Republicans see the sequester as the only way left to impose cuts on Washington spending.

The president and Democrats have said any replacement bill should include both spending cuts and new taxes.

Senate Democrats are trying to unveil a replacement bill by Thursday. The bill is expected to include roughly $120 billion in deficit reduction, much of which would come from imposing the so-called “Buffett Rule” on the wealthy.

The Buffett Rule, named after investor and Obama ally Warren Buffett, would implement a tax rate of at least 30 percent on taxpayers making seven figures a year, and would be phased in for those making between $1 million and $2 million a year.

“The majority is going to offer a proposal. I anticipate that we will have an alternative proposal. That, however, doesn’t lead to a solution — that just leads to a couple of votes,” McConnell said.

Senate Majority Leader Harry ReidHarry ReidTop Lobbyists 2017: Grass roots Boehner confronted Reid after criticism from Senate floor GOP in uncharted territory rolling back rules through resolutions MORE (D-Nev.) said Tuesday that votes would happen the last week of February, and that he would discuss the Democratic proposal with John BoehnerJohn Andrew BoehnerThe two-party system is dying — let’s put it out of its misery One year later, neither party can get past last year's election White House strikes back at Bushes over legacy MORE this week.

The majority leader stressed on Tuesday that the Democratic plan would be split evenly between spending cuts and revenue increases, and Democrats have made clear that they would use next week’s recess to sell their plan to constituents and put pressure on Republicans to back the plan.

Senate aides said Democrats see the measure as a way to blame Republicans if the spending cuts happen. Democrats would argue that Republicans refused to replace the cuts with new taxes on the wealthy.

Republicans contend it was the president’s idea to include the sequester in the 2011 deal to raise the debt ceiling, and that he has failed to provide a plan to replace the $85 billion in cuts set for March 1.

“We’re waiting for the president to tell us how he wants to avoid the sequester,” Senate Minority Whip John CornynJohn CornynAfter Texas shooting, lawmakers question whether military has systemic reporting problem Overnight Defense: Lawmakers question military's lapse after Texas shooting | Trump asks North Korea to 'make a deal' | Senate panel approves Army pick Overnight Regulation: House passes bill to overturn joint-employer rule | Trump officials to allow work requirements for Medicaid | Lawmakers 'alarmed' by EPA's science board changes MORE (R-Texas) said Tuesday. “Hope springs eternal.”

McConnell said “the tax issue is over” following the January deal that raised tax rates on annual household incomes above $450,000 — a hike that was not coupled with spending cuts and represented a significant concession by Republicans. He noted that the 2011 debt deal setting up the sequester included no new taxes. The automatic spending cuts were to be implemented unless a supercommittee of lawmakers came up with a replacement deal by the end of 2011.

“I think we ought to keep the commitment we made,” the Kentucky Republican argued. “If the supercommittee failed, these reductions were made without raising taxes.”

Rank-and-file Democrats expect to be briefed Thursday on the Senate Democratic sequester-replacement proposal, which Reid, Finance Chairman Max BaucusMax Sieben BaucusTop Lobbyists 2017: Hired Guns GOP tries to keep spotlight on taxes amid Mueller charges Clinton-Sanders tensions linger for Democrats MORE (D-Mont.), Appropriations Chairwoman Barbara MikulskiBarbara MikulskiClinton: White House slow-walking Russia sanctions Top Lobbyists 2017: Hired Guns Gore wishes Mikulski a happy birthday at 'Inconvenient Sequel' premiere MORE (D-Md.) and Budget Chairwoman Patty MurrayPatricia (Patty) Lynn MurrayA bipartisan bridge opens between the House and Senate Overnight Health Care: ObamaCare sign-ups surge in early days Collins, Manchin to serve as No Labels co-chairs MORE (D-Wash.) are all working on.

“Democrats believe the right way to reduce the deficit is to target waste and abuse by pairing smart spending cuts with closing tax loopholes, asking the wealthiest Americans to contribute more,” Reid told reporters on Tuesday.

In addition to the Buffett Rule, Democrats are discussing a variety of ways to reach the $120 billion in deficit reduction, including cutting farm subsidies known as direct payments.

Senate Agriculture Committee Chairwoman Debbie StabenowDeborah (Debbie) Ann StabenowSupreme Court weighs Congress's power to dismiss lawsuits We must fund community health centers now Overnight Energy: Perry takes heat for sexual assault comments | Clovis withdraws nomination for USDA post | Battle lines drawn on Arctic refuge drilling | Energy regulator back to full strength MORE (D-Mich.) told The Hill that she is talking with leaders to ensure the sequester bill does not hurt her effort to pass a five-year farm bill.

It is not clear whether Democrats can bring all of their members behind new taxes. The party faces a tough electoral landscape in 2014, and could face internal opposition to the Buffett Rule or to scrapping tax breaks used by the oil-and-gas industry.

“My position is that no industry should be singled out to be punished because they are a legal, robust industry,” Sen. Mary LandrieuMary LandrieuYou want to recall John McCain? Good luck, it will be impossible CNN producer on new O'Keefe video: Voters are 'stupid,' Trump is 'crazy' CNN's Van Jones: O'Keefe Russia 'nothingburger' video 'a hoax' MORE (D-La.), who is up for reelection in 2014, told reporters on Tuesday. “And so while I most certainly am supportive of a review for the whole tax code of all industries, I don’t see why the oil-and-gas industry should have to be ever singled out.”

Other Democrats, including Sen. Ben CardinBenjamin (Ben) Louis CardinFacebook farce shows lawmaker deviousness, demagoguery Dem senator wants details on Manafort's multiple passports US backs out of global oil anti-corruption effort MORE (D-Md.), have said that they would prefer to craft a package to undo the full $1.2 trillion sequester that is to be implemented over 10 years.

“I’m looking for the best answer that gives us two things: deficit reduction that does not kill the recovery,” said Senate Majority Whip Dick DurbinRichard (Dick) Joseph DurbinDems mull big changes after Brazile bombshell After Texas shooting, lawmakers question whether military has systemic reporting problem Bipartisan group of lawmakers aim to reform US sugar program MORE (D-Ill.). “And that’s the balance we’re trying to strike. And sequester is a heavy-handed approach to dealing with deficit reduction, and has very little thought being given to its impact on the economy.”

Sen. Mike CrapoMichael (Mike) Dean CrapoOvernight Finance: GOP criticism of tax bill grows, but few no votes | Highlights from day two of markup | House votes to overturn joint-employer rule | Senate panel approves North Korean banking sanctions Senate panel approves North Korea banking sanctions Trump names Powell as chairman of Federal Reserve MORE (R-Idaho) said that conservatives wanted to keep the same amount of spending cuts, but that Republicans could be open to a measure that gives agencies more flexibility on how to implement the sequester.

“The same savings, I think, can be achieved in most budget arenas without the kind of damage to programs,” Crapo said.

Ben Geman contributed to this story.

— Published at 3:14 p.m. and updated at 8:34 p.m.