Posts: 197202
From: I hold a Juris Doctorate (J.D.) and a Legum Magister (LL.M.)!
Registered: Apr 2009

posted December 20, 2024 06:25 PM            

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Because a budget bill did not pass before 2025, that gives President Trump TWO budget reconciliation bills (a POTUS normally only gets one per year). That means President Trump can now split his tax reforms into two bites of the apple! INCREDIBLE! That means renewal of the tax cuts (which will be made permanent), reducing the corporate rate to 15 percent, no tax on tips, no tax on overtime, no tax on Social Security, and other misc. promised tax changes, such as a tax write-off for interest on auto purchases and writing off home taxes and interest (the big blue states love this because it was removed in President Trump's first tax reform).

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Posts: 3510
From: US
Registered: Sep 2019

posted December 20, 2024 10:11 PM            

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Do I understand correctly? The House GOP can offset the tax cuts through reconciliation?

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Posts: 197202
From: I hold a Juris Doctorate (J.D.) and a Legum Magister (LL.M.)!
Registered: Apr 2009

posted December 20, 2024 10:39 PM            

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No, the tax cuts technically have to be paid for in in the budget in order to use budget reconciliation, which is why the personal tax cuts were not able to be permanent the first time around. But prior experience showed that tax cuts paid for themselves (revenue actually INCREASED), so that might be a creative solution. Reconciliation doesn’t require the normal 60 votes in the Senate.

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