House Republicans Lay Out Tax Reform, Spending Plans

After months of infighting, House Republicans are unveiling a budget resolution Tuesday that would dramatically reshape the federal government, requiring more than $200 billion in cuts to mandatory programs and set the path for a major overhaul of the tax code.”I am proud to stand alongside my colleagues on the House Budget Committee to introduce the Fiscal Year 2018 Budget proposal”.Black announced a committee vote for Wednesday, but action by the entire House could be delayed by the ongoing quarrel between the GOP’s factions.House Minority Leader Nancy Pelosi (D-California) called the budget proposal “toxic”.Calls for cutting projected Medicare costs, the second largest entitlement program after Social Security, involve turning the program into an “optional premium support” system where future beneficiaries would receive a fixed amount of money to buy health insurance on the open market.Overall, lawmakers say it will reduce the deficit next year, and estimates a surplus by 2027. It would do so by slashing $5.4 trillion over the coming decade, including nearly $500 billion from Medicare, $1.5 trillion from Medicaid and the Obama health law, along with sweeping cuts to benefits such as federal employee pensions, food stamps, and tax credits for the working poor. This is a plan to balance the budget, kick off economic growth, secure our national defense, give power back to the states, and hold DC accountable. “Building a Better America makes the tough choices that get our country back on track”.Democrats focused their fire on the plan’s sweeping, but nonbinding, promises to cut from nearly every corner of the budget other than Social Security, defense and veterans programs.It also includes $87 billion in spending for the global war on terror, though this funding is not subject to budget caps.”It embraces the worst extremes of the Trump budget, sacrificing almost every investment that helps American families get ahead”, said top Budget Committee Democrat John Yarmouth of Kentucky.The budget, which has been in the works for months, assumes passage of the House’s plan to repeal and replace ObamaCare.Last year, the budget committee’s resolution never even made it to the floor, but this year there’s added pressure, because Republicans need to pass the budget resolution to establish the “reconciliation” process for their desired tax code reform. The rule allows bills tied to budget measures to be passed with a simple majority vote in both House and Senate, rather than the 60 votes usually required to overcome a filibuster in the Senate. However, the GOP plan would devote $300 billion claimed from economic growth to the tax reform effort.Freedom Caucus members pushed initially for as much as $400 billion in mandatory savings, but the version rolled out on Tuesday directs eleven House committees to come up with a minimum of $203 billion in savings from mandatory spending programs.”Under the Republican budget, seniors, children and working families will struggle while billionaires get more and more tax breaks”, Pelosi said in a statement.