In the last week, the Trump Administration passed a budget resolution that will open the doors to further tax legislation in the future. The budget plan, first passed through the Senate, secured a narrow vote in the House of Representatives of 216-212. Now a bill, it will protect the Republicans' desire to implement a tax cut of $1.8 trillion dollars. While the new bill does not have immediate effects on legislation, it will allow Republicans' to later pass a tax reform bill that will only require 50 Senate votes to become a law. Given that the Republican senate currently holds 52 seats, the tax bill will successfully evade a potential filibuster from their fellow Democratic senators.
Upon its approval, the new law will be a drastic approach to tax reform. While the details of the bill have not been revealed, Republicans have argued that the law will allow the average American household to receive an approximated $4,000 raise. Along with the promised revenue for American families, the tax bill will also become the first major piece of legislation passed by Congress under the President Trump's administration so far. The House Speaker, Republican Paul Ryan shared his glee about the new budget plan, stating that it "brings [citizens] one step closer to historic tax reform. That means more jobs, fairer taxes and bigger paychecks for Americans."
Nevertheless, the tax bill has garnered criticism from Democrats who argue that the budget outline will allow the unnecessary reduction in government healthcare programs such as Medicaid and give an unfair advantage to the rich. Senator Chuck Schumer, a Democrat, expands on the possible drawbacks the bill will have for the majority of citizens in the statement: "This nasty and backwards budget green-lights cuts to Medicare and Medicaid in order to give a tax break to big corporations and the wealthiest Americans."
Other changes that can occur as a result of the bill is the authorization for oil drilling in the Arctic National Wildlife Refuge. This focus on drilling can lead to further changes to the economy by producing more oil and gas, which can allow state revenues to increase nationwide.
Along with the new approaches to tax reform, Republican members of Congress secured yet another act of legislation, barring the ability of citizens to sue bank and credit card companies for financial disagreements. After a slim tie of 50-50 in the Senate that required Vice President Mike Pence's vote, the Senate nullified the rule that allows the public to sue Wall Street. In response to such a ruling, Democrats have argued that the rule would have allowed citizens to protect themselves from financial lawlessness illustrated by the creation of fake accounts at Wells Fargo
Although Republicans found difficulty passing a healthcare bill last month, the party's determination to pass new laws is clear with their approach towards tax reform and the subsequent overturning of a consumer law. While some American families and corporate businesses may find advantages to the new ruling, there are disadvantages on other ends: social programs such as welfare and education may suffer a decrease while the national debt continues to increase as a result of tax cuts.
- http://www.npr.org/2017/10/26/560215916/congress-paves-way-for-tax-legislation-by-passing-budget-resolution
- https://www.nytimes.com/2017/10/19/us/politics/budget-vote-senate.html?mtrref=mail.google.com
- http://abcnews.go.com/Politics/wireStory/senate-gop-moves-repeal-consumer-rule-50694605
- http://www.foxnews.com/politics/2017/10/26/trumps-tax-reform-plan-who-are-winners-and-losers.html
