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Category: 115th Congress

Budget and Taxes

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The Senate passed its FY 2018 budget by a vote of 51-49 on last night. The passage is a key step to Republican hopes of creating and passing any tax overhaul measure through Congress along party lines in the coming months. Senator Rand Paul (R-KY) was the lone Republican dissenter. Behind the scenes, GOP leaders have already hammered out an agreement to reconcile the differences between the House and Senate budget resolutions, likely negating the need for a formal conference and giving Republicans more time to focus on tax reform before the end of the year.

The Senate adopted a package of House-requested tweaks Thursday night, teeing up the budget resolution for House passage as soon as next week. Both chambers need to pass identical budgets in order to allow Republicans to use the fast-tracking tool for tax reform that permits them to bypass a Democratic filibuster in the Senate. As part of the deal, the House will have to accept the Senate’s plan to add $1.5 trillion to the deficit via tax reform after the lower chamber’s budget initially demanded a deficit-neutral tax plan.

If the Senate resolution can be passed in the House – potentially as soon as next week – it would eliminate the need for a conference agreement or other negotiations to resolve differences between the chambers, and the need for reconsideration of the resolution in the Senate. That would accelerate the process for tax reform given that House leaders have said a tax bill will not be released and processed until the budget is completed. President Trump has urged House members to accept the Senate budget resolution to avoid a conference, and the President will head to the Hill next week to talk to the Senate on a path forward with tax reform.

 

 

Senate Begins Debate on Budget Resolution

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The Senate has begun its floor debate on the FY2018 budget resolution. As mentioned previously, although usually used to determine parameters of federal spending, this year’s package contains a set of procedures that would enable the chamber to adopt a tax package by a simple majority.

With all Democrats expected to oppose it, one Republican Senator currently back home for health reasons, and a number of other members of the party expressing reservations about certain parts of the legislation, it is not yet certain that the Republicans have the votes for its passage.  A long list of votes on amendments is expected between now and the final vote on passage, which could take place on Thursday.

Senate Expected to Take Up FY2018 Budget Resolution

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The full Senate is expected to take up this week its FY2018 budget resolution.  The House cleared its version earlier this month.

While the budget resolution usually lays out the budget parameters for a given year, the primary goal of the FY2018 budget resolution is to set up for procedures that would allow Republicans to pass a tax reform package with the minimum number of votes.  The House adopted resolution would also allow for a similar process.

While Republicans are united in their push for a big tax package, there is disagreement on several issues associated with such a measure, including whether a tax-cut bill should increase the debt.  Read more here and here.

House Passes Emergency Spending

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Today, the House voted overwhelmingly to provide $36.5 billion in disaster relief for victims of recent hurricanes and wildfires, as well as emergency credit to help Puerto Rico keep its government functioning. The spending bill, known as a supplemental appropriations measure, now moves to the Senate for consideration next week.

Executive Order on Health Care Issued

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Today, President Donald Trump issued a presidential directive to broaden the development of business association health plans, ease restrictions on short-term medical insurance and expand employer health care reimbursement accounts. The memorandum starts the rulemaking process, which will forge the details of the plans’ requirements. The White House is attempting to expand access to health insurance policies that face fewer regulations after several defeats of ACA repeal this year.

The new regulatory push on adjusting health insurance offerings was signaled by the White House earlier this year but deferred by ongoing and eventually stalled legislative action on repealing and replacing the 2010 health care law.

The order does two important things.

First, it asks cabinet officials to look for ways to expand short-term, limited-duration insurance. These plans generally come with less coverage than health plans sold through the ACA’s individual market, but they have grown in popularity since the ACA’s passage — even though people who buy them face federal penalties because their coverage does not meet the ACA’s standards.

The Presidential memo urges regulators to reverse an Obama administration policy that capped the duration of short-term policies at three months. If that’s enacted, those policies could return to lasting up to almost a year in many states.

Secondly, the order directs agencies to ease rules that allow small businesses, and possibly individuals, to band together in arrangements called “association health plans.” Such arrangements do exist today in some capacity, but expanding them could cause legal headaches for the Administration.

Read the Presidential Memorandum here.