The Senate parliamentarian has rejected a Republican attempt to exempt a small number of religious schools, including Hillsdale College — where many graduates go on to careers in conservative politics —— from an income tax on college endowments.
The GOP bill would substantially raise the tax on the returns of wealthy college endowments but it exempted Hillsdale, a Christian liberal arts school in Michigan, which hired a team of lobbyists to avoid getting hit by the tax.
Parliamentarian Elizabeth MacDonough has also ruled against a section of the bill that removes regulations pertaining to gun silencers and easily concealable firearms under the National Firearms Act.
The provisions were tucked into the massive budget reconciliation package that Senate Majority Leader John Thune (R-S.D.) hopes to pass by July 4.
The loosening of restrictions on gun silencers, or suppressors, as they are also known, is a top priority of the gun industry and many firearms enthusiasts.
The GOP proposal passed by the House would eliminate the $200 Tax Stamp and enhanced background checks required to own a suppressor.
“We have been successful in removing parts of this bill that hurt families and workers, but the process is not over, and Democrats are continuing to make the case against every provision in this Big, Beautiful Betrayal of a bill that violates Senate rules,” said Sen. Jeff Merkley (D-Ore.), the ranking member of the Senate Budget Committee.
“Republicans are actively attempting to rewrite major sections of this bill to advance their families lose, and billionaires win agenda, but Democrats are scrutinizing all changes to ensure the rules of reconciliation are enforced,” he added.
Sen. Chris Murphy (D-Conn.), an outspoken proponent of gun-control measures, including expanded background checks for firearms purchases, said getting rid of restricts on suppressors would be a bad idea.
“Silencers aren’t illegal in this country, you just have to prove that you’re a responsible gun owner and not a criminal who’s buying a silencer to commit murder,” Murphy noted. “The law has worked very well for years and there’s no reason to change it.”
The parliamentarian struck down several other provisions in the bill, including a section to create a new federal subsidy for private and religious schools and language to create a pre-certification process for demonstrating eligibility for the Earned Income Tax Credit (EITC). The provision would require individuals who claim the credit to obtain certification that their child is eligible.
MacDonough released her most recent rulings late Thursday, hours after rejecting a Republican proposal to cap states’ use of health care provider taxes to increase their share of federal Medicaid funding.
Senate Democrats say that the parliamentarian has ruled against proposals in the bill that would have cut federal programs and spending by $250 billion, forcing Republicans to scramble to rewrite major parts of President Trump’s “big, beautiful bill.”
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