Republicans have set their sights on making the Tax Cuts and Jobs Act permanent. They just need to figure out a way to bypass the Senate rules that prevent reconciliation bills from impacting the deficit beyond its budget window.
Before even having a tax bill to debate, Republicans are teeing up a fight over the Byrd Rule — which dictates how reconciliation bills can impact the budget.
Extending the TCJA is estimated to result in a $4.5 trillion loss in revenue over the next 10 years. Making the tax cuts permanent would clearly run afoul of the rules. That’s not the only math problem Republicans are facing; House lawmakers are meeting this week to discuss how to make the numbers add up between the existing tax cuts, and Trump’s new proposals — like no tax on tips.