Tax Reform cleared a major procedural hurdle last night when the Senate passed a budget 51-49. Perhaps more important, Senate and House Republicans also reached an agreement on how to reconcile the differing House and Senate budget bills, which may eliminate the need for a conference committee. As expected, the Senate’s version of the budget contains instructions for tax reform, opening the door for Republicans to pursue tax reform with a bare majority through the budget reconciliation process.
The Senate budget resolution does provide some interesting (although not unexpected) clues as to the content of tax reform legislation.
For example, the Senate’s budget resolution allows the tax reform bill to add up to $1.5 trillion to the deficit over 10 years, which House Republicans confirmed would carry through to the final negotiated resolution. Continue Reading