WASHINGTON, D.C. — After averting a government shutdown Friday with a one week stopgap extension, Congressional budget negotiators reached an agreement late Sunday on a broad spending package to fund the government for the next five months, ending Sept. 30.

 

Last week’s budget deadline competed with two major initiatives President Donald Trump was hoping to achieve for his first 100 days in office, including introducing a massive tax reform plan.

 

Congress was expected to vote on the roughly $1 trillion package early this week.

 

The bipartisan agreement includes policy victories for Democrats, whose votes will be necessary to pass the measure in the Senate, as well as $12.5 billion in new military spending and $1.5 billion more for border security requested by Republican leaders in Congress.

 

Nearly forcing a government shutdown last week was an earlier insistence from Trump to fund more than $1 billion to provide startup monies to build a controversial border wall with Mexico. He shelved his request when it appeared he didn’t have Congressional backing, and pushed funding into next year.

 

GOP debate on the Affordable Care Act (ACA) was also a stumbling block to pass the current budget. Lawmakers were hopeful the budget would be approved this week without any last-minute hiccups, hoping to avoid another short-term funding extension.

 

Leaders from both parties said the agreement for a broader spending plan became likely after Republicans said they would accept Democratic demands that the Trump administration promise to continue paying ACA subsidies.

 

 

In the middle of last week, he did fulfill a campaign promise and introduced a massive tax reform plan to cut corporate tax rates from 35 to 15 percent, a major boon for large farms and corporations if eventually signed into law. Another significant highlight attacked single and family personal deductions.

 

Although there were scant details in the one-page tax reform outline, White House officials highlighted seven important changes in Trump’s proposal:

 

•The number of tax brackets for individuals would be reduced from seven to three: 10 percent, 25 percent and 35 percent. For most Americans, that lowers the tax burdens by 5 percent, including the top rate for the wealthy.

 

•On the standard deductions, he wants to double the current $6,350 for individuals and $12,700 for married couples on their taxable income. Officials say that is intended to put more money in the pockets of the average taxpayer who do not itemize deductions.

 

•To encourage more people to invest, the White House plans on cutting the top federal capital gains rate from 23.8 to 20 percent. This is achieved by eliminating a 3.8 percent tax used to fund the ACA.

 

•Repeals the estate tax, also called the “death tax,” which the administration says would greatly lift the burden on large farms and small businesses – but critics counter this measure mostly helps Trump’s family and his rich friends. Currently the estate tax has a top rate of 40 percent and only kicks in for estates worth $5.5 million or more.

 

•Eliminates all individual tax deductions except for those that relate to mortgage interest and charitable giving, two that are the most popular; however, cutting state and local taxes would be a concern for people in high-tax states.

 

•Would abolish the “alternative minimum tax” or supplemental tax. This tax aims at ensuring wealthy taxpayers do not take so many deductions or claim so many losses that they end up avoiding tax payments.

 

•Most welcome, some say, would be lowering the corporate tax rate, also one of the most aggressive moves in the plan. The White House says the reduction would be in line with taxes in most other industrialized nations. The plan also calls for a special one-time tax to entice companies to bring back money they made overseas. The proposed tax rate was not disclosed.

 

Danielle Beck, director of government affairs for the National Cattleman’s Beef Assoc., said, “Permanent repeal of the death tax has been a priority for cattlemen and women for decades. Since the death tax was implemented nearly a century ago, it has not only failed to meet the misguided goals set by Congress, but has threatened the existence of many multigenerational farms and ranches.”

 

With regard to his tax plan, Trump is urging Congress to act swiftly on the overhaul in what would be the biggest reform of the tax code in 30 years, since former President Ronald Reagan signed his signature Tax Reform Act of 1986.

 

Critics charge that Trump’s tax plan falls short of the kind of comprehensive tax reform that lawmakers and the public have been urging for several years.

 

White House officials gave no indication when a full plan will be submitted to Congress.