House OKs budget, sees tax cut next
NEXT STOP, tax reform.
The House narrowly cleared the way for Republicans to move forward with promises to overhaul the nation’s tax code on Thursday by passing the Senate’s version of the 2018 budget.
“Big news — Budget just passed!” President Trump tweeted shortly after the vote.
The measure squeaked by on a final tally of 216 to 212, with 20 no votes from Republicans.
The vote triggered a procedural tool known as reconcilliation, which allows the GOP to hold a simple majority vote on tax reform in the Senate.
The White House and Republican congressional leaders unveiled a broad outline of the tax proposal last month, but detailed legislation is not due to be made public until next week.
House Ways and Means Committee Chairman Rep. Kevin Brady (R-Tex.) said lawmakers will begin debating the tax bill Nov. 6.
“Today is a historic day – and we are ready to deliver tax relief that improves the lives of middle-income Americans and struggling families who have been left behind in our slow-growing economy,” Brady said in a statement. “By passing this budget today, we can send a clear message to the American people: Real tax reform is on the way.”
Despite the win on Thursday, there were signs of major hurdles on the horizon as the debate over how to fund Trump’s proposed $1.5 trillion in tax cuts has yet to be settled.
New York Republicans Reps. Pete King, Lee Zeldin, John Faso, Elise Stefanik, Dan Donovan and John Katko all voted against the budget — hoping to preserve a popular deduction for local and state taxes, known as the SALT writeoff.
“The fact that we voted ‘no’ today is a strong message which does increase our negotiating position,” King told the Daily News of negotiations with GOP leadership regarding the deductions.
“This is going to have incredibly long-term conseqences for suburban districts in the New York area,” King added. “Obviously, it’s not a perfect bill. I can vote for it — if there is a satisfactory resolution on SALT.”
Donovan agreed, adding that New York already pays more in federal taxes than it receives.
“I support the tax reform effort because overburdened families deserve tax relief so they can keep more of their hard-earned money, but I can’t support legislation that forces my constituents to pay for tax cuts elsewhere in the country,” Donovan said.
Only two Republicans from New York, Rep. Chris Collins from the Buffalo suburbs and Rep. Tom Reed of Corning, voted in favor of it. Another dispute could arise as Republicans raise the possibility of scaling back the popular tax-deferred retirement savings program. Trump on Wednesday said there is still a possibility that an annual cap could be placed on contributions into 401(k) plans — or threatening such a measure could be used as a “negotiating” tool for the GOP. That contradicted his statement on Monday that, “there will be NO change to your 401(k).”