Washington ( CNN ) -- Senate Democrats proposed a $ 110 billion measure Thursday to put off mandatory across-the-board spending cuts set to take effect March 1 . The package made public by Senate Democratic leaders calls for replacing the so-called sequester cuts with a combination of increased tax revenue from millionaires , ending agriculture subsidies and reducing defense spending after the war in Afghanistan ends . Republican leaders in Congress have demanded that Democrats come up with a plan for avoiding the imminent cuts , technically known as sequestration . However , the GOP opposes any increase in tax rates or other steps to bring in more tax revenue , saying the nation needs to reduce the cost of government . Kerry : Cuts would hit foreign aid , diplomatic security . `` I would respectfully disagree that the American people are going to suddenly demand more tax hikes , '' an aide to Senate Republican leader Mitch McConnell said . A White House statement said that opposing what it called the balanced plan by Senate Democrats would amount to prioritizing `` tax loopholes that benefit the very few at the expense of middle- and working-class Americans . '' The issue extends a long-running political dispute over government spending and federal deficits that dominated President Barack Obama 's first term , as well as his successful re-election campaign last year . Republicans were forced to concede on their steadfast opposition to increased taxes by agreeing in January to higher rates on top income earners as part of a deal to avoid some of the harshest impacts of what was known as the fiscal cliff , which included the sequester cuts and automatic tax hikes . Napolitano : Spending cuts will hurt homeland security . That agreement put off action on the sequester cuts , which were mandated by a 2011 agreement to raise the federal debt ceiling . The purpose of the deep cuts to all discretionary programs and the military was to motivate Congress to reach a comprehensive deficit reduction agreement that would replace it . However , such a deal has proved impossible , leading to the imminent application of $ 85 billion in spending cuts for 2013 and almost $ 1 trillion over 10 years . Defense Secretary Leon Panetta and other officials warn that the cuts will have a dire impact on government operations and military readiness . The Pentagon would absorb about half of the reductions . While the White House and congressional leaders from both parties oppose sequestration , the approach for averting it has become the latest congressional showdown involving ideological differences over the size and role of government . House Speaker John Boehner noted on Thursday that the House passed bills last year to prevent the cuts from affecting the military , but Senate Democrats never acted . `` Those days are over , '' Boehner declared , but he also signaled a willingness to negotiate with the Senate over any legislation it sends over . `` It 's time for the Senate to do their work . We can ... if they 're willing to pass a bill , we 'll find some way to work with them to address this problem . '' Panetta : World is watching U.S. on budget . The plan unveiled Thursday by Senate Democrats would just replace the cuts through the end of this year , leaving time for possible negotiations on a broader deficit-reduction package that would eliminate sequestration entirely . The Democrats proposed $ 54 billion in revenue by implementing the `` Buffett rule , '' a principle by billionaire financier Warren Buffett that he should n't pay a lower tax rate than his secretary . Under it , anyone with adjusted income of more than $ 1 million after charitable deductions would pay a minimum 30 % tax rate . Other revenue measures in the package include ending tax breaks for companies that ship jobs overseas and closing tax loopholes for the oil industry . In addition , the package would cut military funding starting in 2015 , following the planned end of U.S. combat operations next year in Afghanistan . It would also end agriculture subsidies for a total saving of $ 55 billion . `` Billions in direct payment subsidies are paid out even in good times and for crops farmers are n't even growing , '' explained Sen. Debbie Stabenow , D-Michigan , who chairs the Senate Committee on Agriculture , Nutrition and Forestry . Panetta said Wednesday that Congress needs to put aside party and ideological divisions that he called `` the greatest concern I have for our national security . '' He expressed concern over how the world will view the United States if it fails to avert sequestration . `` What ( other countries ) worry about is what I worry about , which is whether or not we can govern and whether or not we can face the tough decisions that have to be made and resolve those , '' Panetta said . CNN 's Deirdre Walsh contributed to this report .
NEW : The White House urges Republicans to favor the middle class over tax loopholes . The plan raises taxes on millionaires , ends farm subsidies and cuts defense spending . An aide to Sen. Mitch McConnell says Americans oppose higher taxes . Score: 6