The United States Congress gave a decisive step this Thursday in process of adopting first budget of presidency of Donald Trump, after approving House of Representatives law that will allow to release expenditure items during fiscal year 2018. In addition, measure gives m vehicle to negotiate reform that will lead to tax cut that Republican promised during campaign.
The budgetary resolution went ahead with a tight margin (216 to 212). A score of Republicans were lifted, eir because very popular deductions were eliminated in ir states or because y consider that it is not done enough to contain expense. The Democrats, on or hand, voted against it. The Senate must now give final approval to draft, but it would suffice with simple majority to prosper.Learn More
- The Senate approves Trump's budget and paves way for fiscal reform
- Trump launches a powerful tax deduction without clarifying who will pay cost
- Republicans fail again in ir attempt to reform Obama's health law
The budget in its current formulation will amount to 1.5 trillion dollars (1.3 trillion euros) to deficit over next 10 years, which is against principle of fiscal discipline of most conservative wing. The White House argument is that higher growth will generate additional revenue and combine it with five trillion cuts in social programs such as Medicaid (health care for poor) or Medicare (retirees) in that period.
The action of House follows vote last Friday in Senate. It is actually a procedural strategy, which prevents Democrats from dilate process for adoption of different spending items, estimated at $4 trillion, of which 622 billion go to defense. The Republicans thus open a quick way to cut taxes and avoid a failure as happened with repeal of Obamacare.
Trump's fiscal reform manages to make an important move. However, re are many issues in air about how it will be implemented. At this time re is only one framework proposal in which main objectives are set. But re are critical decisions to be made, including imposition of pension plans or how loss of income will be compensated.Consensual formula
The intention is that re be a first specific legislative proposal for November 1, when real negotiation will begin to give with a consensual formula. "It's possible," says Republicans ' leader in House of Representatives, Paul Ryan, "The goal is to get middle class to save." Donald Trump is even waiting for some Democratic congressman to join.
In addition to cutting taxes on individuals and businesses, new fiscal framework seeks to double minimum income deduction, facilitate reduction of spending on capital investments for businesses, and repatriate benefits that large Multinational companies leave parked on outside. Treasury Secretary Stephen Mnuchin asks legislators to approve reform as many as before.
Conservatives need to record a legislative victory in this sense that y can offer ir bases before mid-term elections. The intention of Republican representatives is that text to simplify tax system can be adopted before Thanksgiving break. Ryan admits that members of his party will have to take complex decisions to adopt reform.
Nancy Pelosi, leader of Democrats, believes that fiscal plan that is being designed from opposition is "irresponsible" and seeks to favor mainly higher income. "These are tax cuts for rich, it's not a tax reform," he lamented before vote in an advance of what will be position of his party in this process. "It's a disgrace," he added.