(The Center Square) – Through a newly-introduced amendment, Senate leaders have found a way to move the House’s budget resolution forward and make President Donald Trump’s 2017 tax cuts permanent.
The Senate’s amendment, set for a procedural vote Thursday, would subtract $3.8 trillion from the price tag by changing fiscal policy, authorize $1.5 trillion to fund other Trump tax goals, and raise the debt ceiling by $5 trillion.
By adopting a current policy baseline, which treats renewing the 2017 Tax Cuts and Jobs Act as a continuation of current law rather than new policy, the Senate’s amendment zeros out the cost of extending the cuts and allows for them to be permanent.
Lawmakers are still awaiting approval from the Senate’s parliamentarian to use the current policy baseline, but Senate Majority Leader John Thune, R-S.D., forged ahead anyway, claiming that Senate Budget Committee Chairman Lindsey Graham, R-S.C., has the power to greenlight it.
“With the passage of this budget resolution, we unlock the ability for the appropriate Senate committees to fully fund our border needs for four years, provide much-needed financial relief to our military at a time of great danger, [and] make the 2017 tax cuts permanent to energize the economy,” Graham, who gave his approval Wednesday, stated.
The House’s original $4.5 trillion budget resolution, operating under a current law baseline, had priced extending the tax cuts for the next ten years at $3.8 trillion. It had instructed House committees to find at least $1.5 trillion to finance the costs, assuming that economic growth would offset the rest.
Normally, the chambers adopt identical budget resolutions giving House and Senate committees the same savings targets before moving forward in the budget reconciliation process. But Thune and House Speaker Mike Johnson, R-La., have decided the quickest way to enact Trump’s priorities is by taking a two-tier approach that saves the alignment and other details for later.
The new Senate amendment keeps the House’s deficit reduction instructions and instructs Senate committees to find at least $3 billion in cuts. The low floor will give the upper chamber flexibility to make changes once the compromise budget resolution passes both chambers and the actual writing of the reconciliation package gets going.
In a social media post Wednesday, Trump said the Senate plan “has my Complete and Total Support” and declared that “Every Republican, House and Senate, must UNIFY. We need to pass it IMMEDIATELY!”
But Democrats, along with some Republicans in the Senate and many in the House, are less enthusiastic than GOP leaders. They point to alarming numbers from outside budget organizations like the Committee for a Responsible Federal Budget.
According to the CRFB, adopting the compromise budget resolution could add anywhere from $45 trillion to $60 trillion to the national debt by 2055.
House Budget Committee Ranking Member Brendan Boyle, D-Pa., accused Republican leaders of “blatantly lying” about the cost of the bill.
“The use of so-called current policy baseline is just D.C. jargon for the single most irresponsible tax bill in American history,” Boyle said. “This is the very same group that spent four years during President Biden’s administration pretending to care deeply about the deficit. Their hypocrisy is glaringly obvious.”
The amendment needs only a majority vote in the Senate to pass, but it remains unclear whether Thune will have enough Republican votes to do so.