Republicans’ attempt to save Americans from the largest tax hike in U.S. history took a step forward Thursday night, as the Senate narrowly passed a motion to begin debate on amendments to the budget resolution passed recently by the House.
The resolution passed by an almost entirely partisan vote of 52-48, with only Sen. Rand Paul (R-Ky.) voting against the rest of his party.
The Tax Cuts and Jobs Act passed in 2017 during Pres. Donald Trump’s first term are set to expire at the end of the year. If the Trump tax cuts are allowed to expire, some taxpayer benefits will be cut in half, as The Center Square notes:
“If the Trump tax cuts expire, the average taxpayer will see a 22% tax hike as well as their guaranteed deduction slashed in half. The child tax credit would also reduce from $2,000 per child to $1,000 per child.”
In addition to permanently extending the taxpayer savings provided by the 2017 legislation, Republicans’ budget blueprint would also eliminate taxes on tips, overtime pay and Social Security and increase the state and local tax deduction.
Thursday’s vote sets in motion the process Republicans hope will result in the passage of budget legislation containing the extension and expansion of tax cut provisions:
- A 50-hour “vote-a-rama” of proposed and considered amendments.
- A vote to pass the amended budget resolution, expected to take place at some point on Saturday.
- A House vote to approve the Senate’s proposed changes.
- Approval by the Senate Parliamentarian to employ the “reconciliation” process, which would allow Republicans to avoid a filibuster and pass the final budget bill (including the tax cuts) with a simple majority.
- Without reconciliation, Republicans would need unlikely help from Democrats to reach the 60 votes necessary to end the filibuster and proceed to a final vote on the budget bill.
- A vote to pass the budget package.
- Pres. Trump’s signature transforming the bill into law.
To qualify for reconciliation, the Senate Parliamentarian would have to rule that the budget legislation contains only provisions that affect revenue and expenditures.
Republicans are hoping to pass the budget bill by the end of May, assuming all goes smoothly throughout the process.