House Reconciliation Bill 5-25-25

The House passed their “Big Beautiful Bill” as a Reconciliation Bill that maintains the Federal Budget at current levels. The House did not propose fixing US Income Tax Bracket in this bill. They kept the Tax Brackets used in the 2017 Bill and made them permanent to avoid having them expire in December 2025. 

A reconciliation bill is a legislative tool used in the United States Congress to enact legislation with a simple majority in the Senate, bypassing the need for 60 votes to overcome a filibuster. It is primarily used for bills related to budget-impactful items like taxes, spending, and the debt limit. 

Here's a more detailed explanation:

Key Features of a Reconciliation Bill:

Bypass Filibuster: Unlike regular legislation, reconciliation bills in the Senate only require a simple majority (51 votes, or 50 if the Vice President breaks a tie) for passage. This is crucial for passing controversial or partisan bills that would otherwise be blocked by the filibuster. 

Budget-Related Focus: Reconciliation is typically used for legislation that affects the federal budget, including changes to spending, revenues, or the debt limit. 

Starts with Budget Resolution: The process begins with a budget resolution passed by both the House and Senate, which sets specific targets for spending, revenue, and the debt limit. 

Instructs Committees: The budget resolution then instructs specific congressional committees to draft legislation that meets those targets. 

One Bill, Multiple Provisions: Each committee writes a bill based on its instructions, and these bills are combined into a single, omnibus reconciliation bill. 

Byrd Rule: The Byrd Rule limits what can be included in a reconciliation bill, ensuring that the provisions have a direct impact on the federal budget and comply with specific budget rules. 

Limited Debate: Debate on reconciliation bills in the Senate is limited, usually to 20 hours, further expediting the process. 

In essence, a reconciliation bill provides a streamlined and expedited process for Congress to enact legislation that impacts the federal budget, particularly when the majority in the Senate is not large enough to overcome a filibuster on a regular bill. 

https://www.google.com/search?q=reconciliation+bill+definition

Comments

The House Bill authorizes a $4 trillion increase in the Debt Ceiling. Budget Allocations will continue to be $7 trillion and Revenue is expected to be $5.5 trillion.

The strategy worked. The Senate has developed enhancements to this Bill and will send them to the House. If the House agrees, they will add the Senate amendments and the Senate will approve the Bill. The final Bill will then be sent to the President to sign into law.

I expect the House will propose reductions in Income Tax Rates for “low earners”. The lowest Bracket should be reduced from 10% to 5% of income lower than $11,925. The next lowest Bracket should be reduced from 12% to 10% for those earning $11,926 to $48,475. Tax Rates for households earning less that $60,000 should not exceed 15%.

Lower earners have gained higher benefit levels and will benefit from lower energy costs and gain access to higher paying manufacturing jobs. The Bill includes increasing the Child Tax Credit from $2000 to $2500 and Medicaid is expanded.

The Bill supports Job Creation.  Higher paying jobs for “low earners” may require some training. The US currently has 7 million job openings. Provisions in the Bill will allow businesses to offer higher pay. Part-Time and Summer employment should become more available to teens. The deportation of unvetted Illegals will make these jobs available to US citizens.

Norb Leahy, Dunwoody GA Tea Party Leader