The House approved the Fiscal Year (FY) 2018 Budget Resolution (BR) (HConRes 71) by a 219–to-206 vote on October 5. The measure is intended to serve as the legislative vehicle for tax reform. All present Democrats and 18 Republicans voted against the measure.
Senate Budget Resolution
Meanwhile, the Senate Budget Committee approved its own budget resolution (BR) on October 5. A full Senate vote is expected the week of October 16. The two BRs are expected to go to conference to reconcile differences to reach full congressional passage, which would unlock the reconciliation process, enabling tax reform legislation to pass with only a simple GOP majority.
“Today, the House passed one of the most significant budgets many of us will ever vote on – a budget that paves the way for once-in-a-generation, transformational tax reform,” House Ways and Means Committee Chairman Kevin Brady, R-Tex., said in an October 5 statement. The BR contains tax reform provisions and reconciliation instructions, which allows the Ways and Means Committee to move forward in considering tax reform legislation. The Ways and Means Committee’s tax reform bill will be unveiled within three weeks, House Speaker Paul Ryan, D-Wis., has said.
“This budget is about one thing: using budget reconciliation to ram through giant tax giveaways to the wealthy and big corporation and to do it without bipartisan support,” said Rep. John Yarmuth, D-Ky., ranking member of the House Budget Committee.
The BR includes a policy statement on tax reform and specifically recommends five policy items:
(1) simplifying the tax code to make it fairer for American families and businesses and reducing time needed for tax compliance;
(2) substantially lowering tax rates for individuals and consolidating the current seven income tax brackets;
(3) repealing the Alternative Minimum Tax (AMT);
(4) reducing the corporate tax rate; and
(5) transitioning the tax code to a more competitive system of international taxation.
By Jessica Jeane, Wolters Kluwer News Staff
House Concurrent Resolution on the Fiscal Year 2018 Budget, HConRes 71