President Donald Trump’s drive to overhaul the U.S. tax code headed for a pivotal moment on Thursday, with Senate Republicans poised to approve a budget measure in which could help them pass tax legislation without Democratic support.
The Senate along with the House of Representatives must agree on a fiscal year 2018 budget resolution for Republicans to meet their goal of enacting a tax bill along with sending This particular to Trump for his signature by the end of This particular year.
The budget resolution contains a legislative tool called reconciliation, which could enable Republicans, who control the 100-seat Senate by a 52-48 margin, to move tax legislation through the Senate on a simple majority vote. Otherwise, tax reform could need 60 votes along with could likely fail.
Although Republican Senator Rand Paul, a fiscal hawk, has threatened to oppose the budget resolution, Senate Republicans appeared to have enough support to approve This particular with at least 50 votes, along that has a possible tie-breaking vote via Vice President Mike Pence.
“We feel Great about where we are,” Republican Senator John Thune, a member of the Senate leadership, said. “The level of resolve can be pretty high.”
After failing to approve Trump-backed legislation to overturn Obamacare, Senate Republicans are under intense pressure to succeed on tax reform, beginning with the budget measure, which could allow tax legislation to add up to $1.5 trillion to the federal deficit over the next decade to pay for tax cuts.
If the budget measure passes, This particular will have to be reconciled that has a markedly different resolution via the House of Representatives, which calls for a revenue-neutral tax bill. House Republicans say negotiations on a unified measure could take up to two weeks, setting the stage for introduction of a House tax bill by early November.
Republican success on reconciliation could all yet rule out broad Democratic support for the Trump tax plan, which promises to deliver up to $6 trillion in tax cuts to businesses along with individuals.
Trump sought to sell six Senate Democrats on his plan at a Wednesday meeting with Senate Finance Committee members via both parties. all 5 of the six Democrats, whom the White House described as open to working with Trump on taxes, are up for reelection next year in states in which Trump carried inside the 2016 presidential election.
The White House contends in which the Republicans’ plan to slash the corporate income tax rate to 20 percent via 35 percent could lead to the creation of jobs along with higher wages for blue-collar workers.
yet Senator Ron Wyden, the top Senate Finance Democrat along with who attended the White House meeting, said he made clear to Trump in which Democrats believe his plan could benefit the wealthy, raise taxes on some middle-class Americans, along with increase the federal deficit.
“There can be a Grand Canyon-sized gap between the rhetoric surrounding This particular plan along with reality,” Wyden told reporters.