Budget Passage Critical For Tax Reform

The House has passed its budget bill, and the Senate has passed its version out of committee.  The two chambers must come together to iron out difference to provide tax relief to farmers and ranchers once the Senate bill moves forward.  The American Farm Bureau Federation’s RJ Karney says a budget must be finished to allow tax reform to take place.

“The House and Senate need to pass a budget resolution that would allow the tax writing committees to develop a tax reform package that could pass through reconciliation.  So, the reason a budget is so important this year is, in order for there to be tax reform the House and Senate must pass a budget resolution.”

Karney added there are differences in the House and Senate versions of the bill that must be addressed.

“The House budget includes reconciliation instructions for the agriculture committee to cut $10 billion over a ten year period, from nutrition programs.  On tax reform, the House wants a deficit nutral tax reform.  The Senate proposal right now has no reconciliation instrutions for the agriculture committee.”

The senate proposal would also allow for $1.5 trillion to be tacked on to the deficit.  The Senate will consider its budget proposal next week when lawmakers return from recess.  Once passed and both the House and Senate can agree on merging the two versions, the budget will become final, without the need of approval by President Trump.

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