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Trump hails budget vote as paving way for 'biggest tax cuts in US history' | Trump hails budget vote as paving way for 'biggest tax cuts in US history' |
(35 minutes later) | |
Donald Trump has hailed a key Senate budget vote as paving the way for the biggest tax cuts in US history. | Donald Trump has hailed a key Senate budget vote as paving the way for the biggest tax cuts in US history. |
The Republican's approved budget resolution for the 2018 financial year paves the way for their tax-cut package, which would see huge cuts take effect over the next decade. | |
The $4tn budget cleared the first hurdle in a Senate vote on Thursday by 51-49. | |
Mr Trump tweeted that the measure "got ZERO Democrat votes with only Rand Paul (he will vote for Tax Cuts) voting against". | Mr Trump tweeted that the measure "got ZERO Democrat votes with only Rand Paul (he will vote for Tax Cuts) voting against". |
"This now allows for the passage of large scale Tax Cuts (and Reform), which will be the biggest in the history of our country!" he said. | "This now allows for the passage of large scale Tax Cuts (and Reform), which will be the biggest in the history of our country!" he said. |
The White House also hailed the bill's passage, saying it “creates a pathway to unleash the potential of the American economy through tax reform and tax cuts". | |
Under Capitol Hill's budget rules, the nonbinding budget resolution is supposed to lay out a long-term fiscal framework for the government. | |
Once the budget plan passes through Congress, the House and Senate can bring forward a follow-up tax plan without fear of it being blocked by Democrats in the Senate. | Once the budget plan passes through Congress, the House and Senate can bring forward a follow-up tax plan without fear of it being blocked by Democrats in the Senate. |
The final plan calls for $5tn in spending cuts over the next decade, including cuts to Medicare, Medicaid and the Obama-era healthcare law, though Republicans have no plans to actually impose those cuts with follow-up legislation. | |
Republicans will then seek to pass follow-up tax cuts later this year that would cost up to $1.5tn over a 10 year period. | |
Mr Trump turned his attention to sweeping tax reforms after failing to make progress with his much-touted repeal of Obamacare. | |
His plan would see corporation tax slashed from 35 per cent to 20 per cent. | |
Additional reporting AP | Additional reporting AP |