The GOP-led Congress is now turning to the budget reconciliation bill that is expected to include tax reform and spending cuts after the passage of the Continuing Resolution, which keeps the government funded through the end of the current fiscal year on September 30.
According to the Committee for a Responsible Federal Budget, the House and Senate have to “pass a concurrent budget resolution that includes a deficit reduction or cost target for relevant committees” in both chambers to formally put the reconciliation process into motion.
“Each committee would then propose policies to meet those targets and compile them into reconciliation legislation,” read a CRFB analysis. “The final package would be eligible to be privileged in the Senate, meaning that it would not be subject to the filibuster.”
The House passed a Fiscal Year 2025 budget resolution in February that “calls for up to $2 trillion in spending cuts as partial offsets for $4.8 trillion of tax cuts and spending increases,” the CRFB said. The CRFB explained that the House resolution is still available for the Senate to pass to begin the reconciliation process or Congress could use a FY2026 budget resolution.
Between $5 trillion and $11 trillion in cuts; closing key loophole
The budget reconciliation bill is expected to include tax policy changes that could cost as little as $5 trillion and as much as $11 trillion over 10 years. Those changes include expanding the State and Local Tax (SALT) deduction, eliminating taxes on tips, exempting overtime pay from federal taxes, exempting Social Security benefits from federal taxes, lowering taxes for U.S. production of certain goods and reducing tax benefits for stadium owners. […]
— Read More: justthenews.com
