Around the same time that the latest repeal of the ACA was gaining traction, Senate leaders lead by Budget Committee Chairman Bob Corker (R-TN) indicated that Republican leadership had come to an agreement on a budget resolution for 2018.
The budget resolution is significant in that it could clear the way for a fast track tax cut measure later this fall. Under the proposed agreement Congress would be able to provide a $1.5 trillion tax cut (over ten years). It would not necessarily have to be paid for. The budget resolution would provide for what is called dynamic scoring. Dynamic scoring would bypass the traditional CBO calculations that attempt to calculate the cost of a tax cut. Instead, dynamic scoring would calculate the amount of economic growth that would be projected as a result of a tax cut, and suggest that a tax cut would not increase deficits but would increase economic activity to such an extent that deficits would not occur.
Whether more conservative members of the Senate or the House of Representatives will go along is unclear at this point. The issue was also pushed aside this week as a result of the ACA debate.
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In the meantime, the President continues to push for massive tax cuts, but the exact outlines are not yet clear. On Monday, House members will meet to discuss further details. It is also unclear what role, if any, the Democrats will play. If they use a reconciliation, they may not need Democrats since the new resolution would clear the way for Senate passage on 50 votes.