Senate Republicans unveiled a budget proposal Friday that includes a $1.5 trillion tax cut.
But it doesn't include instructions to allow Republicans to pursue Obamacare repeal or an overhaul of the 2010 Dodd-Frank law through the budget reconciliation procedure, although that could be changed later as the budget is considered.
The resolution would be the first step in the process allowing the GOP to use the reconciliation procedure to advance and pass tax legislation with only 51 votes in the Senate, bypassing a Democratic filibuster.
"This budget resolution puts our nation on a path to balance by restraining federal spending, reducing tax burdens, and boosting economic growth," said Mike Enzi of Wyoming, the chairman of the Budget Committee. "It is also the first important step in providing Congress with the tools it needs to enact tax reform that will grow America's economy and strengthen hardworking families and small businesses."
The budget blueprint would lead to a government surplus within the 10-year budget timeframe, allowing for the assumption that cutting government spending and instituting reforms would accelerate economic growth. Altogether, faster growth generates $1.2 trillion in revenues over the 10-year budget timeframe to help the budget balance in the later years, on paper.
It calls for $4.3 trillion in spending reductions on mandatory spending programs, which include entitlement programs like Social Security and Medicare.
Lawmakers aim to mark-up the blueprint in committee next week and then pass it soon after to proceed with the tax push.
"This budget is especially important because it will allow us to get to work on our pro-growth, pro-family, pro-jobs tax reform plan," said Senate Majority Leader Mitch McConnell.
Democratic Leader Charles Schumer citicized the GOP move forward on tax legislation. "The Senate Republican budget is the clearest sign yet that Republicans are intent on pursuing a tax plan that would blow a huge hole in the deficit and stack up debt, leading to cuts in programs that middle-class Americans rely on," he said.