House GOP Unveils Budget Plan That Attaches Major Spending Cuts to Coming Tax Overhaul Bill

In Budget, Taxes On
- Updated

House Republicans unveiled a 2018 budget plan Tuesday that would pave the way for ambitious tax reform legislation — but only alongside a package of politically sensitive spending cuts that threaten to derail the tax rewrite before it begins.

GOP infighting over spending, health care and other matters continues to cast doubt on whether the budget blueprint can survive a House vote. Failing to pass a budget could complicate leaders’ plans to move on to their next governing priority as hopes of a health-care overhaul appeared to collapse late Monday in the Senate.

The House Budget Committee blueprint, which is set for a Thursday committee vote, sets out special procedures that could ultimately allow Republicans to pass legislation over the objections of Senate Democrats who can normally block bills they oppose. GOP leaders in the House, as well as top Trump administration officials, hope to use those procedures — known as reconciliation — to pass a tax overhaul later this year.

The instructions in the draft budget, however, go well beyond tax policy and set the stage for a potential $203 billion rollback of financial industry regulations, federal employee benefits, welfare spending and more. Those are policy areas where Republicans have, in many cases, already passed legislation in the House but have seen Democrats block action in the Senate.

House Budget Committee Chairman Diane Black (R-Tenn.) said the spending proposal is “not just a vision for our country, but a plan for action.”

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