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Senate committee paves way for tax cuts with budget resolution

Sen. Orrin Hatch, R-Utah, chairman of the Senate Finance Committee, talks to Senate Majority Leader Mitch McConnell, R-Ky., during a news conference on a unified tax reform framework at the U.S. Capitol on Wednesday.

The Senate Budget Committee released a fiscal 2018 budget resolution Friday that paves the way for tax cuts by increasing the deficit by as much as $1.5 trillion.

On Wednesday, Republicans unveiled a tax framework calling for lower individual and corporate tax rates and eliminating most standard deductions but protecting tax incentives for retirement savings. Senate and House tax-writing committees will use the nine-page framework as they draft legislation.

The Senate budget committee will mark up the resolution next week and then it goes before the full Senate for a vote in mid-October.

The resolution calls for limiting discretionary spending for the fiscal year that begins Oct. 1 to $549 billion for defense and $516 billion for non-defense, in line with spending caps already in place.

Caps set in a House budget resolution are $621.5 billion for defense and $511 billion for non-defense discretionary spending, which will require reconciliation between the two chambers before tax committees can technically begin filling in the details of the tax framework.