Today, the House adopted the Senate-passed FY2018 budget resolution, H. Con. Res. 71, that would lay down the foundation for tax cuts. While a budget resolution is traditionally used to set up the broad parameters for spending for a given fiscal year, this year’s resolution is being used as a vehicle to set up procedures to move changes to the tax code. The measure passed by a vote of 216-212 and allows allows for fast-track consideration of tax overhaul legislation, without being subject to filibuster in the Senate.
Assuming that the budget resolution would pass, the House leadership announced earlier this week a draft tax measure would be unveiled next week pending the approval of the budget in the House. With passage, the House Ways & Means Committee, which has jurisdiction on all revenue raisers, is on track to release their tax bill as early as November 1. What the House’s reformed package will contain is still a moving target. There have been many issues raised with proposed cuts and offsets to such a measure — the most recent issue is the State and Local Tax (SALT) deduction. Eliminating this deduction has been a big issue for Republicans in blue, high-tax states, such as New York and California, who want to preserve the deduction. Other recent issues include limiting the 401(k) pretax contributions, expanding the child care tax credit, and including Unrelated Business Income Tax (UBIT) as an offset for tax cuts.
Stay tuned.