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Senators Corker and Toomey Reach Tentative Budget Resolution Deal

Bob Corker and Pat Toomey, GOP members of the Senate Budget Committee, have reached a tentative agreement on a budget resolution that would allow for tax cuts that would significantly increase the deficit as determined using static scoring.  While the Senators did not specify the size of the potential deficit increase, Senator Ron Johnson indicated that he would support an amount of at...

GOP Considers Hybrid Approach to Tax Reform

Congressional tax committee members and the White House are discussing tax reform that combines permanent revisions to the tax code with temporary rate cuts for individuals and businesses.  The proposal is a potential solution for Republicans if the party opts to utilize the reconciliation process, which limits the life of tax cuts adding 10 years to the federal deficit. (The effect of...

White House Amenable to Bipartisan Tax Reform

White House officials, unwilling to repeat the Obamacare repeal failure and keenly aware of intraparty dissidence, have been discussing tax reform with House Democrats.  Treasury Secretary Steven Mnuchin and chief economic advisor Gary Cohn have been meeting with members of the House’s Blue Dog Coalition and the bipartisan Problem Solvers Caucus to drum up support for reform.  While...

Senate Budget Committee Considers Appropriate Baseline Measure

Senate Budget Chairman Michael Enzi confirmed that he intends to mark up a fiscal 2018 budget resolution in September.  First, however, the Budget Committee will need to agree on how to measure the resolution, using either the current policy baseline or current law baseline.  The former method, which reduces projected federal revenue by approximately $460 billion over 10 years, assumes...

Meadows Cites Thanksgiving Deadline for Tax Reform

House Freedom Caucus Chairman Mark Meadows, speaking at an Americans for Prosperity event, stated that “if [the tax reform bill] doesn’t get to the president’s desk by Thanksgiving… it isn’t going to happen.”  He explained that the timing is imperative in order to retroactively apply tax reform benefits to 2017 and to avoid the legislative slowdown often associated with midterm...

McConnell Confirms Intent to Use Budget Reconciliation to Pass Tax Reform

Senate Majority Leader Mitch McConnell, in response to the Senate Democratic Caucus’s August 1st letter urging bipartisan tax reform, stated that the GOP will need to utilize the reconciliation process to avoid a Senate filibuster.  He suggested that the demands set forth by Senate Democrats indicated that they did not share Republican priorities regarding tax reform.  However,...

White House Legislative Director Hopes for Bipartisan Support for Tax Reform Bill

Legislative Affairs director Marc Short, acknowledging that the reconciliation process leaves little room for error, stated that he is hopeful some Democrats, including members of the Blue Dog Coalition and the Problem Solvers Caucus in the House, as well as red state Democrats in the Senate, will support the passage of a tax reform bill.  Short expects that tax reform legislation will...

Opposition to Border Adjustment Tax Continues

Critics, including the House Freedom Caucus and the Koch-brothers-backed Freedom Partners, as well as the retail, oil refining, and auto industry sectors, remain resolute in their position that tax reform legislation should not include a border adjustment tax (BAT).  House Speaker Paul Ryan and Ways and Means Chairman Kevin Brady remain the BAT’s strongest supporters, but apprehension...

Business Community Urges Congress to Pass Tax Reform

Corporate America is encouraging Congress to pass tax reform legislation as quickly as possible.  Amid apprehension that tax reform could experience delays similar to those facing other items on the Republican agenda, business leaders have pressed congressional leaders to move forward with a budget resolution to facilitate tax reform.  Business groups will launch campaigns during...

House Committee Approves 2018 Budget Resolution

The House Budget Committee, with members voting along party lines, voted to send the recently introduced budget resolution to the House floor for consideration by the full chamber.  Opposition is anticipated not only from Democratic members, but also from within the GOP rank and file, with Republican moderates disagreeing with the proposed steep cuts and Republican conservatives...

House Republicans Disclose Budget Plan

The House GOP has unveiled its budget plan, calling for extensive cuts in federal spending, including federal employee benefits, financial industry regulations and welfare expenditures, that total over $200B.  Along with anticipated accelerated economic growth, these cuts are intended to produce a balanced budget over the next decade.  While divisions among the House Republicans make...