Early this week, the House and Senate will likely vote on a huge overhaul to the tax system. So what is the obscure rule that will allow a simple majority of Senators bypass a filibuster and approve the proposed tax changes?
Reconciliation lets the Senate vote without the cloture process on measures that will affect the budget such as spending, revenue or public debt changes. The passage of the Byrd Rules in the 1990s allows Senators to contest items in any bill using reconciliation, as “extraneous.” But only a majority vote is needed to get a bill approved – and not the 60 votes needed to override a filibuster.
Under the Constitution, Article I, Section 5, says that “Each House may determine the Rules of its Proceedings” and that “Each House shall keep a Journal of its Proceedings.” This language enables the Senate to set his own voting rules. (Thomas Jefferson played a key role in the early process of compiling the operational rules of the House and the Senate when he published his Manual of Parliamentary Practice in 1801.)
In 1974, the Congressional Budget Act put special rules in place to expedite certain budget and spending bills. While initially designed to help Congress get the budget over the finish line in late September, it has become a tool in making budget changes since the late Carter administration and it has been employed since by both political parties.
Each year, the House and Senate prepares a budget resolution that includes instructions to committees about how they can handle spending and revenue issues. Any proposed budget moves must change direct government spending or taxing. Items can’t be recommended outside of a Senate committee’s jurisdiction; and changes can’t affect deficits outside of a certain time period without savings to balance the difference.
During this process, the Senate Parliamentarian will act as a referee on the floor of the Senate, to determine if some of the key budget measures violates these stipulations. A key component in the tax changes proposed by the Republicans is how much they would change the deficit over a 10-year period. They are limited to a $1.5 trillion increase.
As of today, the bill is considered to be within the Byrd Rules and eligible for a vote. The Congressional Budget Act on 1974 limits floor debate to 10 hours after a compromise reconciliation bill presented by the House and Senate is up for a vote. While a Senator can raise a point of order to the chair about parts of the act violating the Byrd Rules, most likely the Republican budget leaders will have accounted for Byrd Rule violations before offering a final measure for consideration.
Reconciliation acts have been presented 24 times since 1980 according to the Congressional Research Service. Notable examples of using the reconciliation process included the George W. Bush-era tax cuts and the final phases of the Affordable Care Act in 2010.
