House Tax Bill Would Bust Senate Reconciliation Rules

A new Penn-Wharton report shows that the House GOP bill would increase federal deficits substantially in both the short-run and the long-run in ways that would vastly increase the difficulty of passing it in the Senate, CNBC reports.

“The Penn-Wharton model shows that the House GOP tax bill would reduce tax revenue by $1.7 trillion over the next 10 years. That exceeds the $1.5 trillion permitted under the budget ‘reconciliation’ rules that allow Senate Republicans to sidestep Democratic filibusters.”

“Moreover, the Penn-Wharton model projects that the House GOP bill would lost another $2.6 trillion in revenue during the 12 years after 2027. Under the no-filibuster rules, the tax bill would not be permitted to increase the deficit at all after its first 10 years.”