Senate Passes The GOP Budget Bill, Paving The Way For Tax Reform

Elias Hubbard
October 22, 2017

The resolution has to be reconciled with a markedly different version passed by the House of Representatives, where Republicans say negotiations on a unified measure could take up to two weeks. Rand PaulRandal (Rand) Howard PaulHouse bill set to reignite debate on warrantless surveillance Authorizing military force is necessary, but insufficient GOP feuds with outside group over analysis of tax framework MORE (R-Ky.) joining every Democrat in opposition to the bill.

Reconciliation lowers the threshold for breaking a filibuster and allows the upper chamber to pass tax reform legislation with a simple majority as opposed to sixty votes.

The budget approved by the Senate expects up to $1.5 tn in tax cuts.

The Republican proposal would eliminate the federal deduction for state and local taxes, a widely popular break used by some 44 million Americans, especially in high-tax, Democratic-leaning states such as Massachusetts, New York, New Jersey, and California.

Trump also touted the passage of the bill in a series of tweets Friday morning.

"With this budget, we're on a path to deliver much-needed relief to American individuals and families who have borne the burden of an unfair tax code", Senate Majority Leader Mitch McConnell said after it passed.

The budget's passage will allow the GOP to use a procedural maneuver to pass tax legislation through the Senate with 50 or more votes, removing the need for support from Democratic senators. The gist: Simplify the code, and deliver the biggest tax cut in US history to offer relief for the middle class and promote a strong business climate. The Obamacare failure already has some legislators facing re-election challenges.

What will it take to pass tax reform? This does seem to clear the way for a tax package, but as ever, the devil is in the details. The White House and House Republicans had vowed that the tax cuts would be offset with new revenue from the elimination of certain deductions, but that is no longer the GOP's goal.

"The top 20 percent of the people pay 95 percent of the taxes".

Trump and the Republicans pitch the plan as a boon to the middle class and a spark to economic growth and jobs.

Other reports by Click Lancashire

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