The Republican controlled House Budget Committee, in a 21 – 16 vote along party lines, passed a massive budget blueprint with $4.5T in tax and spending cuts. The proposal now goes to the full House Floor for debate.
The sweeping measure moves President Trump’s agenda on immigration, taxes and much more forward in the legislative process. For any of this to pass, the Republican paper-thin majority will need to unite, but cracks in that unity are now omnipresent.
The Proposed Budget Blueprint includes…
1 – $1.5T in general spending cuts.
2 – $300B in new spending for border and immigration issues.
3 – $4T to raise the debt ceiling.
4 – $4.5T to extend the Tax Cuts and Jobs Act with a caveat;
a – Republicans must cut at least $2T in spending to receive the entire $4.5T to extend TCJA.
b – If Republicans are able to cut more than the $2T, a corresponding amount would also be allowed to further cut taxes.
The Senate Budget Committee passed a conflicting budget resolution, allowing the issue to go to the floor for debate. Their resolution doesn’t mention either tax or spending cuts.
Let me leave you with this…
This is going to be a full on donnybrook, but at least the budget can now be debated by both full legislative bodies.
The majority of Democrats want no part of this. A flurry of last minute amendments proposed by House Democrats on the Budget Committee were summarily dismissed.
But there’s a small minority of Democrats who have signaled that they’re willing to discuss these proposals. That contingency of 11 might become the deciding votes once the measure comes to a vote.
But the size of the proposed cuts is still a major bone of contention.
The House Freedom Caucus, made up of the most conservative members of the GOP, have stated publicly that $4.5T is nothing more than a good start. Conversely, the more liberal wing of the GOP is voicing opposition.
Let’s take a moment to realize that this is all going to come down to what those individual members are need to get re-elected. Understand that being a member of the House or the Senate has nothing to do with governing.
It’s about staying in power and winning your next election.
If that member comes from a district where their middle and lower class voters they represent are going to be hit hard by these cuts, then they’ll probably oppose. If, on the other hand, they’re from a district where the SALT Limitation is a major problem, they’ll probably support.
You get the idea; hence the major divisions now being seen.
Again, at least the measure is out of committee, so the entire legislative bodies can begin their process. I don’t even want to think about all of the tax changes I’m going to have to educate all of you on and implement next December.
The next several months should be interesting in the extreme. I’ll keep you posted…
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
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