10-20-2017, 01:48 PM
Senate Passes 2018 Budget Plan
Tax reform was one of President Trump's campaign promises. He's still a long way from accomplishing it, but has just cleared one hurdle.
Snip:
Approved 51-49 on Thursday night — Kentucky Republican Sen. Rand Paul joined Democrats in opposing it — the budget differs significantly from one passed by the House on Oct. 5, especially in the amount the national debt can be raised by tax cuts.
Each chamber must pass identical measures for them to have any effect. But even then, the budget's real impact is not on how much the government will spend or borrow — it's how much it will tax, because the measure included language that would prevent a tax bill from being filibustered by Democrats later this year or next year.
Filibusters require 60 votes to break, which means Democrats could derail the tax bill even though they are in the minority. A bill brought up under reconciliation requires only 51 votes to pass, and Republicans hold 52 seats (plus, they have Vice President Pence to break a 50-50 tie).
However, senators from both parties emphasized this week the passage of "reconciliation instructions" telling the Senate Finance Committee that a tax bill cannot be filibustered if it adds $1.5 trillion or less to the deficit.
Over the next 10 years, the budget calls for $473 billion in cuts from Medicare and $1 trillion from Medicaid. They are part of $5 trillion in cuts mentioned overall, but most are not specified.
It is not a law, so the budget cannot actually cut or raise spending or taxes. And this year, it is widely assumed the spending levels for the fiscal year — which actually began Oct. 1 — will not really be used by appropriators.
(continued)
Tax reform was one of President Trump's campaign promises. He's still a long way from accomplishing it, but has just cleared one hurdle.
Snip:
Approved 51-49 on Thursday night — Kentucky Republican Sen. Rand Paul joined Democrats in opposing it — the budget differs significantly from one passed by the House on Oct. 5, especially in the amount the national debt can be raised by tax cuts.
Each chamber must pass identical measures for them to have any effect. But even then, the budget's real impact is not on how much the government will spend or borrow — it's how much it will tax, because the measure included language that would prevent a tax bill from being filibustered by Democrats later this year or next year.
Filibusters require 60 votes to break, which means Democrats could derail the tax bill even though they are in the minority. A bill brought up under reconciliation requires only 51 votes to pass, and Republicans hold 52 seats (plus, they have Vice President Pence to break a 50-50 tie).
However, senators from both parties emphasized this week the passage of "reconciliation instructions" telling the Senate Finance Committee that a tax bill cannot be filibustered if it adds $1.5 trillion or less to the deficit.
Over the next 10 years, the budget calls for $473 billion in cuts from Medicare and $1 trillion from Medicaid. They are part of $5 trillion in cuts mentioned overall, but most are not specified.
It is not a law, so the budget cannot actually cut or raise spending or taxes. And this year, it is widely assumed the spending levels for the fiscal year — which actually began Oct. 1 — will not really be used by appropriators.
(continued)