This year, citing economic weakness, House Republicans have decided to move forward on tax cuts before Congress passes a budget resolution. Having just passed legislation to reduce marginal income tax rates, the House is expected to take up other tax reduction measures in piecemeal fashion. The Senate, however, will wait until the House completes action on several bills before crafting one large bill later this spring or summer. In the evenly divided Senate, a tax package will have to wait until it has reconciliation protection. Consequently, both chambers will have to agree to a budget resolution.
Senators remain optimistic that a budget resolution and tax cuts can be passed relatively quickly.
Senators want to move expeditiously, but budget resolutions are typically not adopted before the statutory deadline of April 15, and this year may be no exception. If the Budget Committee is unable to report legislation by April 1, under budget law it could be brought directly to the Senate floor, but it is as yet unclear if Republicans have enough votes to pass it in the full chamber. Even after both chambers report a resolution, the House and Senate still must resolve and approve differences, which could further delay adoption and authorization of reconciliation. Although the House has passed marginal rate tax cuts and there is much support for action in the Senate, it may be some time before the president is able to sign legislation into law. Multiple chokepoints in the Senate could delay action.