Get Ready For Changes to TCJA Not an Full Extension

Due to the "Byrd Rule" it is likely that all of the provisions of TCJA will need to be tweaked

Photo by Freysteinn G. Jonsson on Unsplash

The Senate passed a budget resolution last week using the “current policy baseline” approach. Under this approach making the Tax Cuts and Jobs Act permanent would be deemed to have no effect on the deficit.

However, the Senate has what is called the Byrd Rules which requires that any part of the budget process can’t be extraneous and have no effect on the deficit. Therefore, since making TCJA permanent would have no effect on the deficit, Congress will likely have to tweak all parts of TCJA.