Democrats to unveil bill to replace budget cuts

(AP) President Barack Obama's Democratic allies in the Senate are unveiling legislation to avoid a looming set of sharp, across-the-board spending cuts set to strike the Pentagon and domestic agencies in just two weeks.

The measure would impose a minimum tax rate on million-dollar incomes and replace the automatic cuts, known as a sequester in Washington-speak, with cuts to much-criticized farm subsidies and more gradual reductions to the Pentagon budget.

The legislation set to be revealed Thursday is sure to die at the hands of Republicans opposed to new tax hikes when a vote is called the week of Feb. 25.

The automatic cuts would drain $85 billion from the government's budget over the coming seven months, imposing an 8 percent cut to the Pentagon and 5 percent from domestic agencies.