GOP leaders, GOP senators agree on ‘fiscal cliff’ deal

  • September 9, 2021

POLITICO – 3/25/17 10:37:20 The GOP leadership and the Republican senators who led the fight over the GOP’s first major tax reform plan agreed on Wednesday to a “fiscal package” that includes $1 trillion in new revenue.

The measure also contains $300 billion in new spending over 10 years, with an additional $300bn coming from tax credits.

The plan also includes $200 billion in cuts to the military and $1.5 trillion in spending reductions.

Republicans agreed on the $1trn package as they continue to work out the details of a long-awaited tax reform proposal that will be the centerpiece of the tax bill, the White House said.

It is unclear whether the new revenue would come from existing tax breaks, or from other provisions.

The deal will be unveiled later this week, the Trump administration said.

The agreement comes as Republicans grapple with the economic impact of a partial government shutdown and with the political fallout from the government shutdown.

In the deal, which also includes changes to tax rates and business taxes, Republicans pledged to provide tax relief to the middle class, the wealthy and businesses that pay little or no taxes.

“The American people want their tax bills paid and they want a deal,” Senate Majority Leader Mitch McConnell Addison (Mitch) Mitchell McConnellFord attorneys slam FBI’s Kavanaugh investigation for not interviewing Ford, witnesses McConnell says Kavanaugh nomination moving forward as Trump approves FBI probe MORE (R-Ky.) said in a statement.

“These two issues are intertwined, and we must get to a fair agreement.”

The White House also said the agreement would give businesses a break on the business tax.

“This deal also includes tax relief for small businesses and businesses in high-tax states, including a $2,500 deduction for a single-family home,” the White National Fund said in the statement.

Republicans also agreed to a proposal to allow employers to deduct the cost of child care from their taxes.

The GOP leaders also reached an agreement on the size of the $2 trillion-plus cut in federal spending in the bill.

The package would slash the top corporate tax rate to 15 percent, with a cap on individual tax rates.

The bill also includes an additional offsetting measure to offset the $600 billion in spending cuts.

“It is a win for the American people and the American economy,” said Senate Finance Committee Chairman Orrin Hatch Orrin Grant HatchGOP senator says Kavanaugh inquiry should be allowed to go forward on Supreme Court Republicans move to pass tax bill in wake of Supreme Court ruling Republicans move bill to replace Obamacare with spending bill MORE (Utah), the Senate Finance Chairman, in a prepared statement.

The tax plan will likely pass both chambers, but it will face an uphill battle in the House.

The Senate Budget Committee, chaired by Sen. Ron Johnson Ronald (Ron) Harold JohnsonTrump administration to add nearly $2.5tn to Pentagon budget in 2018, 2018 deficit forecast Republican lawmakers want to hold off on budget-reduction push until after 2020 Senate Republicans vote to delay votes on tax bill until after midterm elections GOP leader: Republicans need to ‘find some common ground’ with Democrats in hopes of passing tax bill MORE of Wisconsin, is working to pass a version of the plan that is more popular with Democrats.

The House Ways and Means Committee will have the final say on the final version of a tax bill.

A Senate vote on the legislation is scheduled for Monday.

A Democratic Senate leader said Wednesday that she was hopeful the tax package would pass, despite the political drama surrounding it.

“I don’t think it’s an easy vote for the president,” said Sen. Heidi Heitkamp Mary (Heidi) Kathryn HeitKasich signs bill repealing Obama-era methane rule to become law Senate Dems demand answers on ‘gag rule’ law MORE (N.D.), who is a co-sponsor of the measure.

“And I don’t want to think about it too long before it passes, but I do think it’ll pass.”

The Senate bill will be introduced next week.

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