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.
PEW and Andy Kohut had the race right on… with this pre-election prediction release…
check it out peoplepress.org
Not so much horse and buggy huh?
Mady..about Zogby, Kerry had a lead last week. Bush had a lead at the end of last week/ the beginning of this one. Now its tied. Indicates that the race is pretty stable right now in a tie.
ABC WaPo is easy. Look at their registered voter data. A huge change 3 days ago from a pretty even split to about a 6 point spread that is fairly stable over 3 days. Indicates to me a pretty big Bush outlier came on 3 days ago, and since then we’ve had 48-47 or so splits. When that big day rolls off, it’ll move closer to tied again. It’s a 4 day moving average, so I expect one more bad spread for us and then, bam, back to normal.
Mady –
One clear difference between the Washington Post/ABC poll and all other polls whose methods I’ve seen described in sufficient detail is that the Post/ABC poll does not weight respondents for Hispanic origin. Hispanics are, as far as I can tell, lumped in with whites.
I would expect that Hispanics with high school education or less would have an extremely low rate of participation in a poll, because of long working hours and language barrier. (Even if you speak a non-native language reasonably well, do you speak it well enough to feel like doing a 20-minutes telephone interview?) The non-participating low-education Hispanics are replaced, due to the weighting process, with low-education whites who (at least in the income-biased sample produced by polling methods) tend slightly toward Bush.
(Note that the ABC weighting method — I haven’t seen the details of the Post’s — is different from most other polls. I called it “cell-weighting” in an earlier post. The more usual weighting method, which I called “parameter weighting,” will also underrepresent low-education Hispanics in the final results, but they will be replaced by a mixture of low-education whites and blacks and more educated Hispanics. This, I would guess, will also bias results against Kerry, but to a substantially lesser degree.)
I think this will be remembered as the year when polls were shown to be living in the horse and buggy world, while the US had moved on to autos.
The polls are measuring a universe that cannot be measured by phone polls pressed into 2-3 day chunks of time in samples that total 1000 and don’t look remotely like the electorate.
Two items:
1. I was going to ask the same question as a previous post: why is the WP/ABC poll so different? Even on registereds, it showed a 7-point Bush lead today, I think…
2. Any idea how many new folks might come out in FLA on the minimum wage referendum? That’s a huge potential swing for Kerry, it seems to me…
Keep up the good work — love this site!!
eg
Yes.
What’s different is the intensity around the election – it’s so high. We Dems want the polls to reassure us, to give us a moment of hope, a moment of reprieve from this crushing Republican control of the Executive, the Legislative and seemingly the Judiciary.
We fear we will lose in Florida again. We fear that the Supreme Court will decide it all again. We fear that we’ll lose because we didn’t get that one more vote out in Minnesota or Ohio or New Mexico. The closeness of the 2000 election, the division in the country, the obsessive news coverage of the coverage of the coverage of the election and the pundits talking about the polls and the insane number of little instant polls and the blogs and the emails and the talk radio and and and . . . It’s hard to keep positive and to think all of our little-door-knocks and small contributions will add up to getting rid of a horrible, horrible president.
I mean – if Kerry wins, it will be the first time since Paul Wellstone won in Minnesota that I can say it was the work of all of us ordinary people doing what we can in the crevices of our work-a-day lives. That would be a pretty big wish come true –
It’s not that no one cared about Gore or Bush as candidates, no one really cared about the election – until, of course, that final day in Florida when it all blew up and then there was Kyoto and ABM and September 11 and Iraq and we all realized how wrong we had been not to work as hard as we could in Fall 2000.
Kerry in a landslide –
Two things:
First of all, I find it alarming that Kerry has not led at all in any recent Zogby polls. Yes, they do waver, but never to Kerry getting a majority percentage.
Also, could anyone explain the methodology of the Washington Post/ABC tracking poll, and why, in a time when very few polls show results that favor Kerry, but most show a quite close race, the Post has been showing Bush consistently at 50% or over. Today it shows, I think, 51 Bush, 45 Kerry.
Thanks,
Mady
Polling is definitely going through growing pains. You cite a number of reasons why polls vary (clearly, on election day most or all will have been wrong–if by wrong we mean to understand predicting the outcome).
I think the polls themselves may be part of the problem. We have respondent fatigue–not on an individual level, but as a nation. Look at those so-called “undecideds.” I find it odd that their numbers have not declined significantly since June. My guess is that they’re not measuring conviction so much as fatigue. It seems like something between 5-10% of every poll are undecided. Wouldn’t we expect to see that decline as the electorate gets to know the candidates? But it hasn’t. My guess is that this group has just had it with pollsters. They’re decided, but they ain’t tellin’ us.
Also, it’s odd that Andy would make the argument about voter volatility when he himself has measured how strongly convinced so much of the electorate is.