Reconciliation Effort Ramps Up in Congress
September 17, 2021
The slim majorities Democrats hold in Congress have complicated their goals to advance their policy priorities. One challenge they face is in the Senate, where major measures need at least 60 votes in that chamber.
The work-around is a process called budget reconciliation, which requires a simple majority in the Senate - 51 votes. The House and Senate are using that process now on a $3.5 trillion package. The Congressional Budget Act allows reconciliation for policies that change spending or revenues.
Committees play a significant role in the budget reconciliation process. Their work is “constrained” by a legislated cap on the assembled parts of the bill, which cost no more than $3.5 trillion. The tax committees in each chamber determine how the spending will take place -- the Senate Finance Committee and the House Ways and Means Committee.
The House plan would establish a combined state and federal corporate tax rate in Iowa of 33.7%, making the corporate tax rate in Iowa the third highest in the nation behind New Jersey and Pennsylvania. See a U.S. map of these combined rates provided by the nonpartisan Tax Foundation here.