The drive of US president Donald Trump to overhaul the tax code which is heading for a pivotal moment on Thursday, with the Republicans are all set to approve a budget measure which would help them to pass the tax legislation without the support from the Democrats. The House of Representatives and the Senate must agree on a fiscal year 2018 budget resolution for the Republicans to achieve their target of enacting a tax bill and sending it to Donald Trump for his approval and signature by the end of this year. The budget resolution contains a legislative tool which is known as reconciliation that would enable the Republicans who are in control of the 100 seat Senate by a margin of 52 - 48 to move the legislation of taxes through the Senate on a simple majority vote. Otherwise, the tax reform would need 60 votes and is most likely to fail.
Although Republican Senator Rand Paul, who is a fiscal hawk, has threatened to oppose the resolution of the budget; Senate Republicans appeared to have sufficient support to approve it with at least 50 votes along them with a possible casting vote from Vice President Mike Pence. Republican Senator John Thune who is a member of the Senate leadership mentioned that we feel good about where we are and the level of resolution is quite high. After failing to approve the legislation that was backed by Trump for overturning Obamacare, Senate Republicans are under immense pressure to succeed on the reform of taxation, starting off with the budget measure, which would allow the legislation of tax to add up to 1.5 trillion dollars to the federal deficit over the next decade to pay for tax cuts.
In a tweet, that Trump wrote in an early morning post on Twitter that the Republicans are going for the big Budget approval today which is the first step toward massive cuts in the rate of taxes. Trump also mentioned that they have the votes but it is still unpredictable and no one knows what might happen. If the budget measure is passed, it will have to be reconciled with a different resolution from the House of Representatives, which demands for a revenue - neutral tax bill. Moreover, the House Republicans are of the viewpoint that the negotiations on a unified measure could take some time up to two weeks which is actually setting the stage for the introduction of a House tax bill by early next month.