Americans think Congressional tax reform may be coming

Posted October 06, 2017

The final version is likely to stick closely to the Senate measure.

The Senate Budget Committee's budget resolution is a nonbinding guideline for committees that are creating their own spending bills.

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.

In fact, history indicates that with Republicans in control of the White House and both chambers in Congress, when push comes to shove and our elected leaders are compelled to find money to replace the revenues lost to tax cuts, they will inevitably turn to federal entitlement programs. Black said Thursday that she did not expect a bicameral accord until early November. House Republicans and Speaker Paul Ryan have for years drawn up plans that would allow them to make deep cuts the program.

Republicans on Capitol Hill say it's unfair to call it a "cut", because it is instead a reduction in the rate of growth.

The president - if we ever saw his tax returns, we could tell you exactly how he'll do - but The New York Times has estimated that it would cut his tax bills by more than $1.1 billion. Many researchers have dispelled this myth, including the US Federal Reserve, the Economic Policy Institute, and the Center on Budget and Policy Priorities. The proposal itself doesn't mandate actual policy changes, but proposes a Republican vision for a balanced budget. It should be very clear that this action is necessary, but by no means sufficient, to getting the tax cut Republicans and their constituency groups and donors want. In light of the recent shooting in Las Vegas, Mr. Trump should act on gun violence; he already has the political capital especially because he was endorsed by the NRA, and due to his cult-like following, he can sell the populist wing of the Republican Party on any idea (e.g. millions of "illegals" voted in the last presidential election).

The budget is particularly important this year because it is the prerequisite to using reconciliation for a major tax bill.

Sen. Heather Somers, R-Groton, issued a release touting "a common-sense budget that doesn't raise taxes on the hard-working families of our state".

Nearly immediately, disagreements emerged over how much to cut certain tax rates, which deductions could be eliminated, and whether the tax reform package would be revenue-neutral.

Sen. Len Suzio, R-Meriden, hammered home the point in an email to constituents, urging them to press Malloy to sign a budget with "NO NEW TAXES".

"The fact is all that's being talked about right now is rates", Corker said Wednesday. "You're going to have less revenue and more deficits".

The House has passed a $4.1 trillion budget plan that promises deep cuts to social programs and Cabinet agency budgets, but whose chief goal is to set the stage for a comprehensive GOP overhaul of the US tax code later this year.

The proposed fiscal 2018 budget resolution Senate Republicans announced last week would lead to a $1 trillion cut to Medicaid and $473 billion cut to Medicare over the next decade, along with slashing other programs low-income individuals rely on, according to a new report prepared by the Senate Budget Committee minority staff.

The real-world trajectory of Washington, however, is for higher deficits as Republicans focus on tax cuts, a huge hike in the defense budget, and a growing disaster aid tally that is about to hit $45 billion.

Republicans have also shifted toward a more benign view of immigrants, but not as dramatically.