Mitt Romney has not filled in details of what the tax code would look like if he wins the presidential election, but conservatives in Washington, D.C., are formulating ambitious plans for how to get an overhaul through Congress.
Despite the Republican nominee’s promise to work Democrats on a tax package, senior GOP strategists have been discussing ways to enact major tax changes next year with little or no Democratic support if Republicans control the White House and have a Senate majority.
Although Senate rules make it difficult to pass legislation with fewer than 60 votes, both parties have sought routes around that obstacle. Republicans, if they do better than projected in next week’s elections, would be following a recent tradition by exploring such options.
Current and former congressional aides say at least some Republican leaders are interested in using the budget reconciliation process to rewrite the tax system to lower tax rates and pull back benefits for individuals and businesses. But some Republicans are wary of such a strategy, fearing it could open a Pandora’s box of unwelcome political and policy outcomes.
Republicans have been looking for several months at how reconciliation could be applied to “tax policy issues, as well as the mandatory spending side of the equation,” said one former GOP aide familiar with the discussions.
Passing a tax overhaul through reconciliation is possible but far from ideal, said Rep. Patrick Tiberi (R-Ohio), a senior member of the House Ways and Means Committee. “I just like the odds of a Romney presidency getting tax reform and getting particularly Senate Democrats from red states and working with them.”
A Republican Congress used reconciliation to pass President George W. Bush’s sweeping 2001 and 2003 tax cuts, and Democrats used it to pass President Barack Obama’s health care overhaul in 2010.
The procedural tactic allows the Senate to pass legislation changing revenue or spending levels with minimal debate and without a threat of a filibuster. Restrictions apply, however, among them that reconciliation bills are not supposed to add to the deficit beyond the period covered by a joint budget resolution.
As a result of the Byrd rule — named for the late West Virginia Democratic Sen. Robert C. Byrd — the Bush tax cuts were written to sunset at the end of 2010, creating a temporary tax code that continues to frustrate lawmakers.
Given the headaches created by the last tax reconciliation measure, there has been little suggestion publicly that Republicans might take that course. But GOP strategists are not ruling out any scenario. Those who have studied the budget process closely have said it might be possible to overcome the Byrd rule and pass permanent legislation that adds to the deficit relative to the Congressional Budget Office baseline.
That the Byrd rule was codified in law in 1990 makes it difficult to get around the hurdle, but Republicans who say it can be done point to apparent contradictions in the law, as well as the broad principle that 51 senators can simply vote to pass legislation if there is sufficient will.
Vice President Joe Biden waits to conduct a mock swearing-in ceremony with Sen. Brian Schatz, D-Hawaii, in the Capitol's Old Senate Chamber, December 2, 2014. Schatz was sworn in to serve the remainder of his term since he was appointed to the seat after Sen. Daniel Inouye, D-Hawaii, passed away.