Today In Washington
October 20, 2017
Source: AEO Government Relations Team, Madison Services Group
Next Step: Tax Reform
Last night, the Senate passed its FY 2018 Budget Resolution by a vote of 51-49. During the Senate debate, House and Senate GOP leadership came to a tentative agreement that would eliminate the need to conference the House and Senate resolutions. Under this agreement, the House would accept the Senate’s reconciliation language authorizing $1.5 trillion over 10 years for both Congressional tax-writing committees to produce reform legislation. The House had previously insisted on deficit-neutral tax cuts, however, it had authorized $300 billion over 10 years for tax reform. The House also gave up its insistence on over $200 billion in mandatory domestic spending cuts over 10 years. The Senate agreed to accept the House’s push for higher defense spending without offsets, or cost reductions, in other areas of the federal government.
The following amendments were agreed to by the Senate:
• Senator Susan Collins (R-ME): amendment to provide tax relief to small businesses and to include provisions to prevent upper-income taxpayers from sheltering income from taxation at the appropriate rate (#1151)
• Senator Jeff Flake (R-AZ): amendment to make the American tax system simpler and fairer (#1178)
• Senator Marco Rubio (R-FL): amendment to establish a deficit-neutral reserve fund relating to tax cuts for working American families (#1205)
• Senator Rob Portman (R-OH): amendment to provide for an international tax system that enhances incentives for businesses to invest in America, generate American jobs, retain American jobs, and return jobs to America (#1422)
• Senator Joe Donnelly (D-IN): amendment to create a point of order against legislation that allows companies that have outsourced jobs to foreign countries to benefit from any tax breaks (#1234)
The House is expected to vote on the Senate-passed resolution as early as next week. Upon passage, the House Ways & Means Committee will begin work on tax reform legislation, with the goal of introducing it in early November.