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.
“This is going to get ugly in the very near future.”
When John McCain bested Bush in NH back in 2000 and became the darling of Dems, independents, the media and others hungary for authenticity, Bush, feeling cornered, turned to his base in SC; and boy did it deliver.
Look for that again. As Bush and his far right sponsors begin to sense that things are slipping away, we can expect an avalanche of vitriol from those wonderful people who gave us Bob Jones Univ. and the sludge about McCain’s family. Don’t be surprised when Repubs start talking about Gov. McGrevey being palsy with Kerry.
These people have no shame when it comes to winning elections. Its going to get very ugly.
Kerry is kicking off two weeks of economy focused campaigning, and I’m sure he’ll be going to Ohio quite a bit. Ohio does offer one of the best contrasts between what GW says about the economy and what is actually going on. I’m sure the Kerry people would also like to strengthen and secure that 9 point swing ARG is reporting.
I think the cross-country whistlestop tour was a great thing to do between the convention and the olympics, but now its time to get back to the battlegrounds.
Kerry needs to build on Ohio.
This is going to get ugly in the very near future.
It would be nice if the Kerry team could use Bush’s need to go intensley negative against him. Bush is in a corner, and there should be a way to play that to Kerry’s advantage – perhaps by giving the media a narrative about what Bush is being forced to do. If we can get the media to start throwing around terms like ‘desperate’ when they cover Bush attacks, it would help.
Anything that forces Bush to spend more resources on ground that was assumed to be already his, is a good thing as long as Kerry doesn’t spend too many of his own resources.
Just got off the phone from a long conversation with a high school friend from SW Ohio — much of it talking Politics. Look — Kerry needs to get back there and talk Economics and Jobs — but he should also send Wes Clark in to talk Military talk — particularly around Dayton. (They love him in Dayton because of the Dayton Agreements forged at Wright Patterson.) Edwards needs to visit Hamilton and Middletown, both of which are near bankrupt because of the loss of the steel fabricating industry. They won’t win a majority in that neck of the woods — but apparently there are lots of pick-up votes to be had.
Everyone has been assuming that OH would be secure for Bush so the latest ARG poll is very encouraging. Kerry can pin him down there for a long time. It will also be interesting to see if there is any bounce from the winger-lite convention or whether voters are further alienated by smirking Bush, sneering Cheney and the Swift boat attacks. So far the trend is promising. As the election gets closer swing voters appear to be more comfortable with a president Kerry.
With any luck JK will have the blue states sewed up by Labor Day. That leaves two months to take some states Bush won in 2000. Best bets: NH, NV, WVA, MO, & (drum roll) FL.
Now something else! I wonder how this resignation of New Jersey’s Governor Will affect the Polls? The Right Wing is really starting to through the XXXX now.
American Research has posted a poll for Ohio, taken from 8-9 through 8-11. It has Kerry at 48% Bush 45% Nader 2% Undecided 5%. On the heals of the new Florida polls that have Kerry up 6 and 7 points, things are looking pretty damn good!!
I hate to see EDM engaging in this semantics game (even though it was probably unintentional).
A seven point advantage in Hawaii is a ‘strong lead,’ but the same advantage in Michigan means the state is only ’tilting towards’ Kerry.
I think in these times a seven-point lead is a pretty strong no matter what state you’re talking about.
According to Salon.com GWB, while in Florida, said that a national sales tax is “an interesting idea that we ought to explore seriously.”
Yahoo! says that JK is about to start a two week capaign push on the economy and taxes.
I believe this is the break we need. Team Kerry needs to go to the juglar with this comment from Bush. And if he does, I believe, New Mexico, Nevada, Arizona, and Colorado will be ripe for the picking. And that would create an insurrmountable electoral lock.