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.
A couple of points on this from Wm. Saletan during the 2000 election:
“On its Web site, Gallup makes clear that its poll seeks to maximize daily change: “Our objective is to pick up movements up and down in reaction to the day-to-day events of the campaign.” ”
— also —
“CNN and USA Today are in the news business. They’re paying Gallup for new numbers every day. If Gallup’s numbers don’t change, where’s the news? So Gallup has an incentive to keep its filter loose, allowing the winds of shifting partisan intensity to blow its numbers back and forth.”
Today (Oct 25) Prez Track , Rasmussen’s
site , shows Kerry ahead for the first time
since late August.
Mr. Abramowitz:
I don’t think these results necessarily indicate random fluctuations. Maybe the likely voter screens are working as might be expected: screening out the less intense, less informed late-to-tune-in crowd 3 or more weeks out from the election, and then screening them in as the election nears and their attention sharpens.
I disagree, in part. Some, but not all, of the fluctuations in the tracking polls are simply statistical noise.
Polls that fix the number of Democrats and Republicans in the sample should have less sampling error. Zogby and Rasmussen do so, and they have smaller day-to-day fluctuations. The sampling error MOE with fixed party ID for 3000 respondents (Rasmussen) is around 1.2% and for 1200 respondents (Zogby) it’s around 1.9%. The range of fluctuations for both of these polls since a few days after the last debate has been slightly larger than these numbers. (There is random error due to estimation of weighting coefficients, and there were no doubt oscillations in actual voter preference that were too small to pull out of the statistical noise.)
However, Rasmussen’s result today of 48.4% for Kerry exceeds the average of the preceding 15 days by 2.3%. This is almost 4 standard deviations and seems to represent real movement.
The statistical significance of Zogby’s move in the opposite direction over the last few days is harder to judge, partly because Zogby doesn’t give results in tenth of a percent.
Polls that don’t fix party ID have bigger sampling error. The Wash. Post’s poll oscillations seem to be just slightly larger than the sampling error, although I can’t calculate exactly because they partially adjust for party ID and because they sometimes average over 3 days and sometimes over 4. (Their RV MOE would be about 2.1% if there were no party ID weighting at all.)
When polls move together, of course, it has statistical meaning even if the polls taken one-at-a-time could be random movements. If Zogby jumps more Democratic over the next couple of days (as is likely, because two very pro-Bush days will fall out of the sample), and the Post and Rasmussen stay more or less the same, or if Zogby and Rasmussen stay the same and the Post trends more Kerry (which would bring it out of the sampling error range), we will have a clear trend.
Oct. 25, Rassmussen has Kerry ahead of Bush for the first time since August.
Relax, have faith, we are not alone, ignore all polls if your nerves can’t take it and GOTV!!!
I hate to say this, but if everyone had a hunch their polls were not making sense then fudging (er… fine tuning) the methods in ways that eventually overcompensates would also create the described effect.