Rep. Raja Krishnamoorthi said the budget resolution will blow a $1.5 trillion hole in the deficit.
Indian American Rep. Raja Krishnamoorthi (D-IL) denounced the budget resolution passed in the House of Representatives on Thursday morning.
“Today, the House Republican leadership forced through a budget resolution that would blow a $1.5 trillion hole in the deficit while paving the way to a tax plan that would increase taxes on working families while making it harder for them to save for retirement,” Krishnamoorthy said in a statement.
The resolution was narrowly passed with 216-212 votes, with some Republicans joining Democrats to oppose the resolution.
“Fundamentally, this resolution lays the groundwork for the Republican leadership’s plan to raise taxes on millions of Illinois families by thousands of dollars each year through eliminating the deduction for state and local taxes (SALT), while making it harder for them to save for retirement by slashing the cap on their 401(k) contributions,” Krishnamoorthy said. “This significantly increases our long-term deficit while making life harder for working families in every state.”
The passing of the resolution is seen as a big victory for the Trump administration. “Big news – Budget just passed!” Trump tweeted following the successful passing of the fast-track tax reform legislation.
Big news – Budget just passed!
— Donald J. Trump (@realDonaldTrump) October 26, 2017
Before the vote, Trump had tweeted: “Do not underestimate the UNITY within the Republican Party!”
Do not underestimate the UNITY within the Republican Party!
— Donald J. Trump (@realDonaldTrump) October 26, 2017
With this resolution, the Congress will now be able to approve tax package with a simple majority vote.
Republicans who voted against the budget contended that the legislation will be detrimental to the residents of some states as it limits state and local tax deductions. Most of these Republicans represent New York and New Jersey. Opponents are of the view that the resolution would mainly benefit corporations and rich individuals. The proponents, however, argue that the economic gains resulting from the tax cuts will cover the costs.