River Bend Times

Democratic Leader Chuck Schumer, alongside Ranking Members of the Finance and Budget Committees, Ron Wyden and Jeff Merkley, has sent a letter to Republican Leader John Thune criticizing Senate Republicans' plan to employ a "current policy baseline" in the budget reconciliation process. In their letter, they warned that such a move would disrupt established budget law, leading to an increase in federal debt and negating long-standing fiscal rules.

“President Trump and congressional Republicans are raising costs for working people, taking away their health insurance, and threatening seniors’ hard-earned Social Security benefits, all while pursuing a multi-trillion-dollar tax cut for the wealthy and claiming it should be free,” stated the Senators. The letter accused Republicans of aiming to replace the "current law baseline" with a "current policy baseline," thereby allowing expired tax cuts to continue without financial offsets.

Historically, the "current law baseline" approach requires that any revenue or spending changes be measured according to existing laws, noting future projections if laws remain unchanged. The letter highlighted the practice used by Republicans in the 2017 tax law where certain provisions are scheduled to expire at the end of 2025, arguing that new tax legislation must also assume these expiration dates.

They underscored that previous uses of reconciliation aimed to reduce deficits, but they allege Republicans have modified this process to provide tax benefits for the wealthy, adding to the national debt. The letter insists that any extension of the Trump-era tax cuts through budgetary adjustments would lead to further financial obligations for the U.S. Treasury.

Additionally, Republicans were accused of drawing false parallels between the present proposal and actions in 2012, when the Democrats reportedly did not utilize the "current policy baseline" as claimed.

Notably, the letter referenced comments from Republican figures who also disagree with the policy baseline approach. These include remarks from Republican Rep. David Schweikert denouncing it as "intellectual and economic fraud," and George Callas, a senior tax counsel, who suggested that making expiring tax provisions permanent without offsets would significantly raise federal borrowing.

The letter ends with a warning that adopting such budget measures would remove the fiscal discipline embedded in the reconciliation process, amplifying national debt consequences.

“President Trump and congressional Republicans are raising costs for working people, taking away their health insurance, and threatening seniors’ hard-earned Social Security benefits, all while pursuing a multi-trillion-dollar tax cut for the wealthy and claiming it should be free. Enacting tax cuts for the wealthy will mean the Treasury has to borrow trillions of dollars more than it otherwise would, and billionaires win while working families pay the price. It is an obscene fraud and the American people won’t stand for it.”

Senate Budget Committee can be reached at their main office in Washington, D.C., for more information.