The House followed the Senate’s lead in adopting the fiscal year 2018 budget, in a 216-212 vote on Thursday. The Building A Better America Budget is the first major budgetary accomplishment in decades – and produce a budget surplus.
Under the Obama administration, GDP floundered at a historically unprecedented level – destroying the American middle class. In a stark reversal from those blighted days, this budget is focused on delivering wealth and prosperity to the American middle class – by further boosting GDP by 2.6% above the impressive rates that it is already seeing.
The House budget aims to enhance the economic growth even further by reducing the red tape on businesses and reforming the various government agencies that had burden entrepreneurs. “Overall, our budget achieves $6.5 trillion in deficit reduction, resulting in a $9 billion surplus in 2027,” the Budget Committee explained this past July. “We do not do this simply by cutting spending and reducing the size of government. Rather, our budget also enables states to find solutions that work for them, and it empowers individuals and small businesses to increase economic output and unleash the power of the American free market.”
The Building a Better America 2018 budget balances within a decade, and achieves a $9 billion in surplus, and is projected to further increase the GDP growth by 2.6 percent.
The House budget also includes a defined path for tax reforms including an effort to ease out and simplify the tax code to make it much fairer, lower the tax rates for businesses and individuals, and lower the corporate tax rate. It also repeals the Alternative Minimum Tax. The budget also plans to repeal the Obamacare plan and replace it with the House’s American Health Care Act, which they say would eventually lower the deficit by $204.1 billion over the next decade.
“We estimate that the pro-growth policies of health care reform, tax reform, welfare reform, and deficit reduction assumed in our budget will yield economic growth of 2.6 percent on average over the 10-year budget window, resulting in $1.5 trillion in deficit reduction,” the committee said.
Last week, the Senate had passed the budget resolution in a 51-49 vote, also in an effort to move tax reform forward.
The Senate Finance Committee, along with the House Ways and Means Committee and the Trump administration, released its own tax reforms framework in September, which attempted to cut down taxes for all Americans, streamline the code to be more simple and fair, bring back and create new jobs for more American workers, and bring back trillions in wealth from overseas.
Some have also suggested that the plan could lead to an increase in GDP growth by 4 percent and wages could increase by as much as $4,000 due to the drastic measure.
“One way this budget can help our economy is by providing legislative tools to advance tax reform,” said Senate Majority Leader Mitch McConnell in a statement. “Tax reform is all about getting America going again and growing again. It aims to take more money out of Washington’s pockets and put more in middle-class pockets.”