Byrd brains

27 March 2017 By Gina Chon Follow @GinaChon

After failing to repeal Obamacare, Republicans are turning to tax reform. It’s an even more complex endeavor. Like healthcare, tax policy is constrained by an obscure law that limits the effect on the U.S. deficit. Trump may loathe Washington process, but the numbers have to add up.

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Republicans on March 24 failed to hold a vote on the American Health Care Act, which would have repealed and replaced the Affordable Care Act, commonly known as Obamacare.

The party now plans to focus on rewriting the U.S. tax code under the so-called budget reconciliation process, which requires only a simple majority in the Senate for approval. That means Republicans would not need any Democrats in the 100-member chamber for passage.

Budget reconciliation bills also must adhere to the 1985 Byrd rule, which is named after Senator Robert Byrd of West Virginia, who died in 2010. Under the rule, legislation can’t cause “an increase in the deficit in any year outside the budget window,” which is usually 10 years.

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