Senate Republicans are thinking of drafting a budget that would allow up to $1.5 trillion in tax cuts over the next decade, The Wall Street Journal reports based on people familiar with the discussions.
If voted on, the budget that makes a fiscal room for a $1.5 trillion in tax cuts, would then be followed by a tax bill that would specify rate cuts and other policy changes that do not exceed that figure. Urging for a tax cut in the budget would let Republicans decrease the tax rates while making fewer tough decisions on what tax breaks to eliminate to help pay for the cuts.
Republicans argue that the extension of some expiring tax cuts was inevitable and that their plan would boost the economic growth and generate revenue while decreasing the actual impact on the deficit below whatever overall number they agree on.
It can be concluded that the Republicans are slowly shifting away from the stance that favors a tax plan that is fully paid for itself in the first decade. Budget Committee member Mike Crapo (R., Idaho) said on Monday that the tax cut should be “as big as we can get.”
The budget is the very first and needed step to the major tax bill Republicans want to adopt this year. If both the House and the Senate agree on the budget, they can accelerate a bill through the Senate on a simple-majority vote, instead of seeking a 60-vote majority which would for sure require the support from the Democrats.
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