How to Pass a Thousand-Year Tax Cut

Mother Jones

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Republicans would like to pass a permanent tax cut. Sadly for them, Senate procedures prevent that. The only way to avoid a Democratic filibuster is to pass their tax plan via reconciliation, which requires only 51 votes in the Senate and can’t be filibustered. But thanks to the Byrd Rule, any reconciliation bill that increases the deficit beyond a 10-year window is once again subject to a filibuster, and that would doom any tax measure. This limits Republicans to tax plans that sunset in 2028.

But wait. Maybe there’s an alternative. The Wall Street Journal explains:

President Donald Trump has said he wants to cut taxes, big-league, and Republicans are having trouble squeezing his ambitions into congressional rules forbidding bigger deficits after a 10-year budget scoring window.

Some lawmakers are exploring a way around that problem: Make the window bigger. Sen. Pat Toomey (R., Pa.) suggested last week a “longer horizon” to overcome obstacles posed by the process known as reconciliation….A 15-year, 20-year or 30-year budget window could let Republicans pass a temporary tax cut that is long enough to give companies confidence to invest but short enough so its fiscal effects peter out by the 2030s or 2040s.

Surprised? That’s because everyone always talks about the Byrd Rule forbidding deficit increases beyond a 10-year “budget window.” But that’s not what it says. Here’s the actual relevant language:

A provision shall be considered to be extraneous if it decreases revenues during a fiscal year after the fiscal years covered by such reconciliation bill or reconciliation resolution.

In this context, “extraneous” means it can be filibustered, and there’s nothing in there about ten years. That’s just custom. If Republicans felt like it, they could pass a bill that “covers” the next millennium and sunsets in 3018. Here is Daniel Hemel, an assistant professor of law at the University of Chicago:

“I don’t think there’s anything magical about the number 10, other than 10 has been the maximum number for long enough that 11 would seem like a break from Senate norms.”

But who cares about Senate norms? Not Republicans. So there must be something more to this or they’d just go ahead and do it. One possibility is that there are still a handful of old-school deficit hawks left in the party, and they won’t vote for a longer budget window. Or there might be some arcane technical issue involved. I would be fascinated to hear from a real budget expert on this.

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How to Pass a Thousand-Year Tax Cut

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