The plan operates under the assumption that some of U.S. President George Bush's tax cuts -- specifically the tax cuts on stock dividends and rate cuts for those in top brackets -- will be allowed to expire, The New York Times reported Thursday.
However, the plan calls for Bush's tax cuts for middle class families to be extended for two years past the current 2010 expiration date.
Both houses of Congress are expected to approve the plan.
"It moves us in the right direction and to balance in five years," said U.S. Rep. John Spratt Jr., D-S.C., the chairman of the House Budget Committee. "On all the basics, our budget is better than the president's."
However, Republicans blasted the plan, saying it would lead to huge tax increases.
"This bill looks like it's promising the largest tax increase in American history," said U.S. Rep. Paul Ryan, R-Wis. "It basically puts the government and spenders first and taxpayers at the end of the line."