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Tax Reform Update: Framework Out, Action on the Hill Possible This Week

Republicans and administration officials working on the fine details of a tax reform package made progress last week, setting up possible action this week.

Paul Ryan and tax reform

Republicans in Congress may take a budget vote this week that would pave the way for tax reform, a major party and Trump administration priority.

Of course, the effort can also be seen as a massive tax cut, depending on who’s talking about the plan.

The Hill reported on Monday morning that the House is expected to vote on a budget this week that would “pave the way” for passing tax reform “by a simple majority.”

The House is set to vote this week on a fiscal 2018 budget, which will pave the way for Republicans to pass tax reform by a simple majority and avoid a Democratic filibuster.

Congressional and administration leaders released their framework for tax reform last week. It includes:

  • Lowering the corporate tax rate from 35 percent to 20 percent
  • Reducing the seven individual tax brackets to three (12 percent, 25 percent, and 35 percent)
  • Doubling the standard deduction, to $12,000 for singles and $24,000 for married couples
  • Scrapping expensive tax deductions, “incuding the state and local tax deduction”
  • Repealing the estate tax, also known as the “death” tax

Budget hawks like the Committee for a Responsible Federal Budget (CRFB) have warned the plan could add $2.2 trillion to the $20 trillion national debt over the next 10 years.

Indeed, President Trump is calling the plan a “Tax Cut,” first and foremost:

The tragedy in Las Vegas makes the current timeline on this effort subject to change.