Washington
The 51-49 vote sets the stage for debate later this year to dramatically overhaul the U.S. tax code for the first time in three decades, cutting rates for individuals and corporations while eliminating trillions of dollars of deductions and special interest tax breaks.
The tax cuts would add up to $1.5 trillion to the deficit over the coming decade, however, as Republicans have shelved fears about the growing budget deficit in favor of a once-in-a-generation opportunity to rewrite tax laws.
“These are reforms that change incentives and drive growth, and we’ve never done that before,” said Sen. Pat Toomey, R-Pa.
Divisions within the GOP indicate the process won’t be easy despite the political imperative.
The upcoming tax measure, always a top item on the GOP agenda, has taken on even greater urgency with the failure of the party to carry out its longstanding promise to dismantle former President Barack Obama’s signature health care law. Republicans have said failure on taxes would be politically devastating in next year’s midterm elections, when control of the House and Senate are at stake.
When reconciled with the House budget plan, the nonbinding measure would set up special procedures to pass follow-up tax legislation without the threat of a filibuster by Senate Democrats. Pressure is mounting, however, on the House to simply adopt the Senate budget plan rather than risk lengthy negotiations that could delay the tax measure.
Democrats blasted the GOP budget, warning voters that the upcoming tax measure will shower benefits on top-bracket earners, corporations, business partnerships and people inheriting multimillion-dollar estates.