Each week while Congress is in session, our Policy team delivers a key update to highlight a topical benefits, health, or retirement news item from the Hill, such as a newly introduced bill, a summary of a committee hearing, or another hot-button matter.
In the early morning hours of February 21, Senate Republicans passed a budget resolution to be the vehicle for border security, energy, and defense spending. Senator Rand Paul (R-KY) joined all Democrats in voting against the measure citing concerns about the deficit after the Senate failed to approve his amendment to find an additional $1.5 trillion in savings.
President Trump surprised Senate Republicans earlier in the week when he announced he preferred the House’s one-track budget reconciliation bill approach for tax and spending priorities versus the Senate approach of handling certain spending priorities now and dealing with tax in a subsequent bill. Senate Majority Leader John Thune said, “Did not see that one coming,” when asked about his thoughts about the President’s announcement. Senate Republicans regrouped quickly, and Senate Budget Committee Chairman Lindsay Graham (R-SC) said that the Senate plan would continue to serve as a backup plan in case the House is unable to pass their budget resolution.
During overnight debate, Senate Finance Committee Chairman Mike Crapo (R-ID) took to the floor to address the Senate’s second, upcoming budget resolution on tax. Sen. Crapo’s remarks centered on highlighting popular provisions of 2017’s Tax Cuts and Jobs Act and their benefits to American families. On February 13, Sen. Crapo and eight other Republican members of the Finance Committee had sent a letter to President Trump calling for permanent tax changes and warning against “temporary tax relief.” Last week, Senate Democrats sent two letters to voice their opposition to the Republican tax cuts and spending plan. In the first letter, 32 Democratic senators joined together to ask President Trump to reject Republican proposals that they contend will raise prices on everyday goods for American families. In the second letter, addressed to the Joint Committee on Taxation, five Democratic senators again sought to keep costs front and center by decrying the use of a “current policy” budget baseline as “magic math.” “The deficit cost of tax cuts is real, even for those who do not like the way the math works,” they wrote.
