On Thursday, the Senate took the first step on the path to overhauling the entire tax structure. In a slim 51-49 vote, the Senate adopted the Fiscal Year 2018 Budget Resolution, cutting spending by an impressive, and meaningful 5.1 trillion over the next 10 years.
The Senate’s budget would also create a $197 billion surplus within 10 years as well – while supporting economic growth and employment. Such a budget was achieved by cutting non-defense-related discretionary spending by $632 billion. The plan is to have a fiscally responsible budget finalized, giving lawmakers the political room to finally streamline the tax code, without excuse.
Senate Majority leader Mitch McConnell explained, “One way this budget can help our economy is by providing legislative tools to advance tax reform. Tax reform is all about getting America going again and growing again. It aims to take more money out of Washington’s pockets and put more in middle-class pockets.”
McConnell hailed the passage of the budget resolution saying, “The Senate is taking the next critical step in passing the comprehensive, fiscally responsible budget before us. It’s a fiscally responsible budget that will help put the federal government on a path to balance. On the economic side, this budget can help our country realize better and more sustained economic growth—which is critical, given the last decade of missed opportunities for the middle class.”
He concluded. “It represent a once-in-a-generation opportunity to replace a failing tax code that holds Americans back with one that works for them. Passing this budget is critical to getting tax reform done, so we can strengthen our economy after years of stagnation under the previous administration.”
The Senate Finance Committee, together with the House Ways and Means Committee and the Trump Administration, had released their own tax reforms framework in September, which made an attempt on cutting down taxes for all the Americans, streamlining the code to be more simple and fair, and bring back more jobs for the American workers, and to bring back the overseas wealth that sums up to trillions of dollars back to the U.S.
However, this legislative victory must be put into perspective. David Primo, a budget expert at the Mercatus Center, reminded lawmakers, “”All the Senate is doing this week is laying out the parameters for the real budget debate and votes over spending and taxes,” he said. “The reconciliation instructions in the budget resolution are what will allow tax reform to avoid a filibuster, and that’s why it is so important. But the real work begins after the budget resolution passes, and that will be working out the details of tax reform.”