Senate Reveals 2018 Budget That Includes Tax Reform Blueprint

Executives are assuming that Washington will enact tax reform and current investment and hiring plans are built on expectations for lower tax rates
AFP

The Senate Budget Committee revealed the 2018 budget resolution on Friday that will allow for Republicans to pass a tax reform package with a simple majority in the Senate.

The Senate budget resolution, if enacted, would cut $5.1 trillion over a decade and seeks to balance the budget within ten years.

Senate Budget Committee Chairman Mike Enzi (R-WY) said in a statement:

This budget resolution puts our nation on a path to balance by restraining federal spending, reducing tax burdens, and boosting economic growth. It is also the first important step in providing Congress with the tools it needs to enact tax reform that will grow America’s economy and strengthen hardworking families and small businesses.

The Republican budget plan would pay for the tax cuts through increased economic growth and cuts to non-defense discretionary spending.

President Donald Trump said that the proposed tax will be “rocket fuel for our economy.”

Republicans plan to use budgetary reconciliation that will allow Republicans to pass a tax reform package through the Senate using a simple majority.

The Senate budget resolution also contains provisions that would allow for Congress to repeal Obamacare through budget reconciliation, suggesting that Republicans could pass a tax reform package and Obamacare repeal through the 2018 budget resolution. However, it remains unclear how the Senate can get a 50 vote majority to pass an Obamacare repeal bill considering that Sens. John McCain (R-AZ) and Susan Collins (R-ME) have opposed any Obamacare repeal bill in the upper chamber.

House Freedom Caucus Chairman Mark Meadows (R-NC) cheered the proposed tax plan. Meadows said, “President Trump has delivered a forward looking tax reform framework that will let hard working Americans keep more of their money, simplify our system, end carve outs for special interests, and will help make our businesses competitive abroad. The Freedom Caucus looks forward to sending a final bill based on this framework to President Trump’s desk as soon as possible.”

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