Donald Trump has hailed a key Senate budget vote as paving the way for the biggest tax cuts in US history.

The Republican's approved budget resolution for the 2018 financial year paves the way for their tax-cut package, which would see huge cuts take effect over the next decade.

The $4tn budget cleared the first hurdle in a Senate vote on Thursday by 51-49.

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Mr Trump tweeted that the measure "got ZERO Democrat votes with only Rand Paul (he will vote for Tax Cuts) voting against".

"This now allows for the passage of large scale Tax Cuts (and Reform), which will be the biggest in the history of our country!" he said.

The White House also hailed the bill's passage, saying it “creates a pathway to unleash the potential of the American economy through tax reform and tax cuts".

Under Capitol Hill's budget rules, the nonbinding budget resolution is supposed to lay out a long-term fiscal framework for the government.

Once the budget plan passes through Congress, the House and Senate can bring forward a follow-up tax plan without fear of it being blocked by Democrats in the Senate.

The final plan calls for $5tn in spending cuts over the next decade, including cuts to Medicare, Medicaid and the Obama-era healthcare law, though Republicans have no plans to actually impose those cuts with follow-up legislation.

Republicans will then seek to pass follow-up tax cuts later this year that would cost up to $1.5tn over a 10 year period.

Mr Trump turned his attention to sweeping tax reforms after failing to make progress with his much-touted repeal of Obamacare.

His plan would see corporation tax slashed from 35 per cent to 20 per cent.