Senate Republicans might soon sidestep the Senate parliamentarian on a controversial accounting tactic that could make or break President Donald Trump’s agenda.
GOP leadership has spent weeks discussing with Elizabeth MacDonough, a nonpartisan referee of Senate rules, whether Republicans can treat Trump’s expiring 2017 tax cuts as cost-free, a novel approach that Democrats have panned as “magic math.”
Senate Majority Leader John Thune (R-SD) indicated that he wanted guidance on the dispute before moving forward with a blueprint that unlocks Trump’s tax, border, and defense priorities. But Republicans, Thune included, are signaling in increasingly public terms that an informal ruling may not ultimately be necessary.
Instead, Republicans are arguing that the decision on what accounting technique to use falls to Sen. Lindsey Graham (R-SC), the chairman of the Budget Committee.
“We think the law is very clear, and ultimately, the Budget Committee chairman makes that determination,” Thune told reporters Tuesday when asked about a possible ruling by MacDonough. “But obviously, we are consulting regularly with the parliamentarian on the best way to achieve the desired outcome here in the end.”
The accounting method, in which Republicans would treat their tax bill as an extension of current policy and therefore zero out the cost, was discussed during Senate Republicans’ Tuesday lunch. There have also been staff-level leadership discussions on using the tactic, according to one source familiar with the matter.
Still, no decision has been made as Republicans prepare for a vote on the budget blueprint later this week.
“We may go in that direction, a lot of this is undecided at this point,” Sen. Shelley Moore Capito (R-WV), the No. 4 Republican in the Senate, said of circumventing the parliamentarian.
The accounting approach would give Republicans the breathing room needed to make their expiring tax cuts permanent and clear the way for additional policies such as “no tax on tips” that Trump promised on the campaign trail.
It has invited scrutiny from some Senate budget hawks, however, because it could ignore trillions in costs that would otherwise be prevented under reconciliation, a legislative process that allows Republicans to skirt the Senate filibuster.
Meanwhile, Democrats have mobilized against the accounting change and are expected to challenge it on the Senate floor. On Monday, senior Democrats including Minority Leader Chuck Schumer (D-NY) sent a letter to Thune calling the approach “budget fraud.”
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Thune would need 50 Republicans to overcome a challenge from Democrats in a floor vote, giving him little room for error. The strategy has broad support within the Senate GOP conference, but some, such as Sen. Bill Cassidy (R-LA), have expressed reservations about its impact on the debt.
“I think a lot of us are of the opinion, including me, that the Budget Committee has that authority,” Sen. Kevin Cramer (R-ND) said. “You don’t need to ask the parliamentarian, and I think that’s pretty clear in law. So maybe we’ll just remove that burden from her. We’ll see.”