White House officials are in advanced internal discussions about a plan to replace the sweeping spending cuts set to begin in January with a smaller, separate package of targeted spending cuts and tax increases, people familiar with the planning said…

The plan that has been discussed by White House officials is similar in many ways to what lawmakers have discussed. It would terminate the spending cuts for a period of six to 12 months, and replace the cuts with more targeted reductions and revenue increases. House Republicans have proposed a similar model, though they have called for terminating the cuts to defense programs only and haven’t accepted a deal to include tax increases as part of any package.

If left unaddressed, the sequester would cut military spending by $54.7 billion in the first nine months of 2013, reducing many Pentagon programs by about 10%. Other domestic programs, such as those relating to education and housing, would also see cuts. Social Security and Medicare benefits would not be hit, with the exception of a 2% cut in payments to Medicare providers.