Republicans have both an arithmetic and a messaging problem as they try to enact Donald Trump’s second-term agenda via a giant budget-reconciliation bill. The former involves finding a way to pay for the $4 trillion-plus tax cuts Trump has demanded, along with a half-trillion or so in border security and defense spending increases. And the latter flows from the necessity of hammering popular federal programs (especially Medicaid) to avoid boosting budget deficits that are already out of control from the perspective of conservatives. This sets up Democrats nicely to deplore the whole mess as a matter of “cutting Medicaid to pay for tax cuts for Trump’s billionaire friends,” a very effective message that has vulnerable House Republicans worried.
To interrupt this line of attack while making the overall agenda slightly more affordable, anonymous White House sources lofted a trial balloon earlier this month via a Fox News report:
“White House aides are quietly floating a proposal within the House GOP that would raise the tax rate for people making more than $1 million to 40%, two sources familiar with discussions told Fox News Digital, to offset the cost of eliminating taxes on overtime pay, tipped wages, and retirees’ Social Security.
“The sources stressed the discussions were only preliminary, and the plan is one of many being talked about as congressional Republicans work on advancing President Donald Trump’s agenda via the budget reconciliation process.
“Trump and his White House have not yet taken a position on the matter, but the idea is being looked at by his aides and staff on Capitol Hill.”
The idea wasn’t as shocking as it might seem. Trump’s 2017 tax cuts reduced the top income-tax rate from 39.6 percent to 37 percent, so just letting that provision expire would accomplish the near-40 percent rate without disturbing other goodies for rich people in the 2017 bill like corporate-tax cuts, estate-tax cuts, and a relaxed alternative minimum tax for both individuals and corporations. One House Republican, Pennsylvania’s Dan Meuser, suggested resetting the top individual tax rate at 38.6 percent, still a reduction from pre-2017 levels but a “tax increase on the rich” as compared to current policies.
Crafty as this approach might have been as a way of boosting claims that Trump had aligned the GOP with middle-class voters (the intended beneficiaries of his recent tax-cut proposals) rather than the very rich, the idea of backing any tax increase on the allegedly super-productive job creators at the top of the economic pyramid struck many Republicans as the worst imaginable heresy. You could plausibly argue that total opposition to higher taxes, or even to progressive taxes, was the holy grail for the party, more foundational than any other principle and one of the remaining links between pre-Trump and MAGA conservatism. At the very idea of fuzzing up the tax-cut gospel, old GOP warhorses like Newt Gingrich and Americans for Tax Reform’s Grover Norquist arose from their political rest homes to shout: unclean! Gingrich called it the worst potential betrayal of the Cause since George H.W. Bush cut a bipartisan deficit-reduction deal in 1990 that included a tax increase.
As it happens, it was all a mirage. In virtual unison, both Trump and House Speaker Mike Johnson have said a high-end tax cut won’t happen this year, as Politico reports:
“President Donald Trump and House Speaker Mike Johnson on Wednesday came out against a tax hike on the wealthiest Americans — likely putting the nail in the coffin of the idea.
“Trump told reporters in the Oval Office that he thought the idea would be ‘very disruptive’ because it would prompt wealthy people to leave the country. …
“Johnson separately knocked the idea earlier in the day, saying that he is ‘not in favor of raising the tax rates because our party is the group that stands against that traditionally.’”
Trump’s real fear may be that wealthy people would leave the GOP rather than the country. Many are already upset about Trump’s 19th-century protectionist tariff agenda and its effects on the investor class. Subordinating the tax-cut gospel to other MAGA goals might push some of them over the edge. As for Johnson, the Speaker is having to cope with the eternal grumbling of the House Freedom Caucus, where domestic budget cuts are considered a delightful thing in itself and the idea of boosting anyone’s taxes to succor the parasites receiving Medicaid benefits is horrifying.
If Trump’s “big, beautiful” reconciliation bill runs into trouble or if Democrats set the table for a big midterm comeback wielding the “cutting Medicaid to give billionaires a tax break” message, squashing the symbolic gesture of a small boost in federal income-tax rates for the wealthy may be viewed in retrospect as a lost opportunity for the GOP. For the time being, that party’s bond with America’s oligarchs and their would-be imitators stands intact.
Why does Bush say the country would be better off if he is re-elected. Maybe he didn’t remember that 9-11 happened on his watch.?????
Jeff, yes. The future is now.
So what John?
I see VoteHillary.org which pushed a 2004 Hillary Rodham Clinton Draft presidency is now pushing her for president in 2008. The site is http://www.votehillary.org I have heard it will be launched as early as next week.
…Continued from above
Case in point:
No matter how the question is asked:
Do you believe it is time for a change?
Does Bush Deserve to be reelected?
Is America on the Right or Wrong track?
etc.
Consistently, 52 to 54% vote that it is time to change the leadership of the country.
That is why Bush never exceeds 44 to 46%. Because the remainder of people disagree with him.
If you look at it historically, this number is very important in the final outcome of the election.
The approval rating (Bush typically in the mid-40s) vs those who think it is time for a change (typically in the low 50s).
This poll doesn’t do anything to undermine that argument.
So no worries. We’re still doing okay.
Kerry has to do a better job defining this election. I told you all it was a mistake to focus so much on foreign affairs and his Vietnam record. Because those who vote on that subject will vote for Bush regardless of what is happening in Iraq or his own record in the military.
Kerry’s statement to the effect that he wouldn’t have changed his vote for the IWR was just stupid.
It isn’t too late. But Kerry definitely has to define this election about the economy – the haves vs the have nots.
That’s how he will win.
He needs a consistent confident message that people understand and resonates.
This poll, and other recent polls, is about Kerry – not Bush.
This CBS poll has gotten a lot of attention these past couple of days but here is why I am less concerned about it than others.
Asides from the veterans, which the polls shows is going for Bush by about 15% (incidently, Bush won the veterans vote in 2000 by about 35% – which means that in overall total number this is still a 20% gain for the Dems – considering that veterans make up about 10% of population, that means this is a total pick up of about 2% total for Dems and a loss of 2% overall for Bush).
Anyway, you’ll notice that Bush’s numbers still hover at the 44 to 45% mark, which is essentially where he is always at.
Bush will not win anything with 45% of the vote.
Thus, the dynamics are unchanged. If you think that Nader will get 2% of the vote. Bush 44% to 46%, that means that Kerry will win 52% to 54% of the vote.
So despite the bruhaha, this poll still shows Bush in trouble.
I suppose with the lead up to the Republican convention, the media has to talk about something.
But I wouldn’t worry too much about it.
When polls come out (not counting Gallup which always over-counts republicans by about 8%) that show Bush consistently getting 48% to 50% and Kerry getting about the same, then I will start to worry.
But when the polls demonstrate a close race at 44% or 45%, then this is just as bad as Bush getting 44% to 45% and Kerry getting 52 to 54%.
Because the undecideds always go to the challenger.
Remember 1980. The race was always “close” between Reagan and Carter – about 42% or so. This went on all the way to election day. Then Carter stayed at 42% and Reagan got the rest.