Murray serves as the head of the Senate Budget Committee. | REUTERS Murray budget: $1T in new revenue

Sen. Patty Murray’s new budget plan calls for raising tax revenues by nearly $1 trillion while cutting spending by roughly the same amount over the next decade, according to people familiar with the proposal.

The Budget Committee chairwoman briefed fellow Democratic senators over the new proposal in a closed-door lunch Tuesday that President Barack Obama also attended. Committee deliberations will begin Wednesday, and the panel expects to vote on the plan Thursday before floor debate next week.


The plan is a non-binding blueprint that does not carry the force of the law, but it allows each party to lay out its vision and priorities for the coming fiscal year.

( Also on POLITICO: Obama budget coming in April)

Murray’s plan calls for $1.85 trillion in additional deficit reduction over the next decade, Democrats said Tuesday. It calls for $975 billion in spending cuts and an additional $975 billion would be raised through an overhaul of the Tax Code by eliminating certain tax deductions, including ones typically claimed by high earners and corporations.

And Murray will include fast-track provisions calling on congressional tax writers to draft filibuster-proof legislation that would raise new revenue. The so-called reconciliation provisions have drawn strong objections by Senate Finance Committee Chairman Max Baucus (D-Mont.) who argued that the budget parameters would limit his ability to push a full-blown rewrite of the Tax Code.

Taken with the $2.4 trillion in deficit reduction already taking effect, Democrats argue the Murray approach would produce $4.25 trillion in additional savings over the next decade, a goal called for by budget experts in both parties.

But critics are certain to jump on what they believe are gimmicks in the Democratic budget plan. For instance, it counts $242 billion that would be saved in reduced interest payments under the proposal.

In addition, Democrats are also expected to cut $240 billion in defense spending, officials said Tuesday. They say the proposal would slash $493 billion from domestic programs, including $275 billion in health care spending, but they would not go nearly as far as Republican calls to dramatically overhaul Medicare.

( Also on POLITICO: Paul Ryan unveils budget plan)

The proposal calls for the automatic spending cuts — known as sequestration — to be replaced with a mix of different spending cuts and tax increases. The proposal also would call for $100 billion in new spending in infrastructure development and job training programs, which Democrats said would be paid for by eliminating certain tax deductions.

Murray said in a statement that House Republicans are “doubling down” on a budget already rejected by voters, while she said her party would push a “responsible pro-growth budget.”

Democrats expect to remain largely united behind the plan, and Murray anticipates having the support of the 11 other Democrats on her committee, giving her enough support to send the bill to the floor on a party-line basis.

But the tax figure could present a problem for a handful of red-state Democrats up for reelection who Republicans will undoubtedly say are supporting a $1 trillion tax hike if they back the plan.

Nevertheless, Democratic leaders believe the Murray plan will allow their party to show a major contrast with Rep. Paul Ryan’s budget and its calls for a significant overhaul of Medicare. And they expect to have the support of at least 50 Democrats on the floor to ensure they would be able to pass the first budget out of the Senate in four years.

The Murray plan would not balance the budget in a 10-year timeframe like the Ryan proposal, which calls for $4.63 trillion in deficit savings over 10 years. But Murray’s 50-50 split between taxes and spending is supposed to be consistent with Obama’s call for a “balanced” approach for deficit reduction, something they argue voters largely support rather than the cuts-only approach backed by Republicans.

Obama plans to unveil his budget plan after Congress begins to debate the competing proposals, something that Senate Minority Leader Mitch McConnell said would “drop a bomb” on the budget process.

There remains an outside chance that the Ryan and Murray efforts could pave the way for a grand bargain to slash the deficit that would overhaul the Tax Code and entitlement programs. But the GOP House and Democratic-led Senate would have to endorse a Ryan-Murray budget deal that would have to include fast-track provisions to shield a future deficit reduction package from a Senate filibuster.

But at the onset of Tuesday’s session of the Senate, it was clear that the two sides had major hurdles to clear before there’s any chance to cut a deal.

Senate Majority Leader Harry Reid (D-Nev.) called Ryan’s budget “extreme,” while McConnell said it would lead to robust economic growth. And both sides accused the other of using budget gimmicks in their proposals.

“It will be a stark contrast,” said Senate Majority Whip Dick Durbin (D-Ill.).