US House passes Budget plan

The House on Thursday sounded the starting gun on legislative efforts to cut taxes by as much as $1.5 trillion over the coming decade, narrowly clearing a budget blueprint that will allow a tax bill to pass Congress without any Democratic votes. The Budget measure would allow for a tax Bill that adds as much as $1.5 trillion to federal deficits over a decade, at a time when the federal government is already piling up more and more debt, which has now topped $20 trillion. The deficit for the 2017 fiscal year, which ended September 30, totalled $666 billion, an increase of $80 billion from the previous year.The outline of a tax plan unveiled in September would cut the corporate income tax rate to 20 percent, from 35 percent, collapse individual income tax brackets from seven to three, with tax rates of 12 percent, 25 percent and 35 percent, and double the standard deduction to $12,000 for individuals and to $24,000 for married couples filing jointly. But the hardest decisions on how to mitigate the costs of the proposal have yet to be made.The Budget resolution approved Thursday, for the 2018 fiscal year, ostensibly maps out spending and revenue levels for the federal government. But its passage is meaningful largely because of the special procedures that it unlocks.he blueprint, as unveiled, would cost the Treasury more than $2 trillion over a decade, according to estimates by tax-writing experts. Now Congress must find a way to force those proposals into a $1.5 trillion budget hole.