Washington
The House budget resolution includes major spending cuts demanded by the party’s conservative wing, but the party’s focus is now on passing a tax bill that could add as much as $1.5 trillion to the budget deficit. Special procedures set out in the legislation would ultimately allow Republicans to pass the bill over a potential Democratic filibuster in the Senate.
“Our budget specifically paves the way for pro-growth tax reform that will reduce taxes for middle-class Americans and free up American businesses to grow and hire,” House Budget Committee Chairman Diane Black, R-Tenn., said during floor debate on Wednesday.
The Senate is proceeding on a separate track toward passing its own budget, which would have to be reconciled with the House version in the coming weeks. The Senate Budget Committee on Thursday advanced a resolution more squarely focused on the tax legislation than the House version.
That legislation is set to reach the Senate floor later this month, with a goal of launching joint budget negotiations by the end of October. Republican leaders in the House and Senate believe any differences in the outlines can be resolved quickly despite objections from some House conservatives. Black said on Thursday that she did not expect a bicameral accord until early November.
Of particular concern is a provision in the Senate bill that would allow tax-writing committees in the House and Senate the ability to craft a bill that adds up to $1.5 trillion to the budget deficit, providing for significant tax cuts. Most Republicans argue the bill will spark economic growth that will offset the revenue loss, thus not adding to a national debt that now exceeds $20 trillion, though many economists say the evidence for that claim is thin.
The House budget envisions a tax bill that will largely pay for itself, while also allowing for up to $203 billion in spending cuts targeting financial industry regulations, federal employee benefits, welfare spending and more.
“This is the most conservative budget in 20 years,” Black said. “The vision in there, if we were to follow it, really could change the trajectory of this country.”
But according to top Republicans, those spending cuts are likely to be set aside to focus on the tax bill once House and Senate leaders meet to work out differences between the two chambers.
GOP leaders urged fiscal conservatives to set aside any ideological concerns they might have with the budget framework in order to clear the way for the tax overhaul, arguing that the budget is simply the first step in delivering on a key legislative priority by the end of this year.
Passing a budget bill would let Republicans take advantage of special Senate budget rules that allow certain tax and spending measures to pass with 51 votes rather than the 60 votes necessary for most other legislation. Republicans have a slim 52-48 majority in the Senate, meaning they could pass a tax bill without the help of any Democrats.