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.
Stephen,
I wish I could say. I know that they lean conservative as a site. I believe that they use a pretty consistent rule for deciding what poll gets included. I found it somewhat unsettling that the ICR poll got included only when it showed Bush leading more than any other concurrent poll. I read their site, http://www.pollingreport.com, http://www.race2004.net, http://www.electoral-vote.com, http://www.electionprojection.com, and http://www.cookpolitical.com, as well as this site. Then I try to come to a common conclusion across these sites. It’s clear that all show the race to be close. Jeff’s point on another thread about turnout seems right on target. Beyond that, I think there are others here far more expert than I on such matters.
In the meantime, enjoy a pint of someone’s best bitter for me. There’s nothing quite like it.
A question from London. Watching your polls in the Us with great interest. Can you give me an assessment of the way in which the realclearpolitics website posts polls. Are they, as they say, ‘seekers after truth’, or are they biased, conscious or not?
Best,
Steohen H.
It’s a conservative site, but realclearpolitics has a nice analysis of the state of the electoral vote.
For Kerry, it’s all about Ohio, with New Hampshire and Nevada as secondary targets. They miss Colorado, either by outright win or by referendum getting him 4 votes.
For Bush, the targets of opportunity are Wisconsin, Iowa, New Mexico, and Maine’s more conservative district.
They given Florida to Bush and Pennsylvania to Kerry, for now.
Per this analysis, for Kerry, losing Ohio means he has to get New Hampshire, Nevada, and some Colorado votes, while holding New Mexico, Iowa, and Wisconsin.
If he wins Ohio and New Hampshire, even if he loses Wisconsin and the Maine district, Kerry wins, if he can hold Iowa and New Mexico.
So…it seems time to focus on Ohio, New Hampshire, Nevada, Colorado, Wisconsin, Iowa, New Mexico, and Maine.
In the back of my mind, I see some opportunity for Kerry in Missouri, Arkansas, West Virginia, and Florida, and some danger in Minnesota, Oregon, Pennsylvania, and Michigan.
All I am going to say is that in doorknocking and registering voters. I have reached and registered people without phones who are adamantly opposed to Bush.
If the dems turn those voters out to vote GWB should be very very afraid on Nov 2……
Gallup would never try to develop a model to sample the phoneless…
Post Debate 2: We did well enough to keep the Big Mo’ so let’s keep at it. GOTV is crucial. So enjoy the post debate glow, and if you have not done so already, sign up for GOTV drives.
SJ-
Sorry, I fail to see the problem with choosing a sampling from people who watched the first debate. Anymore than I fail to see the problem with sampling only people who watched either one of the debates, no matter what the outcome of either one. It’s just as valid an assumption that people who watch the debates are likely voters than any criteria Gallup is using. What seems to be your main gripe is not the methodology, it’s that it shows Bush doing worse than all of the other polls (except those you arbitrarily dismiss as “partisan”).
But all of the polling shows that even a majority of Republicans felt Kerry did better in the first debate, so it does not defy reason that Kerry would score somewhat higher with the subset of people who watched that debate. Likewise, if Bush did better in that debate it would likely show him doing better overall than other polls that did not only sample that subset. I doubt that Ipsos knew going into their polling that Kerry would “win” the debate, but conspiracy theorists might believe that.
ARG and Zogby are Dem polls? I must’ve missed that. BTW, go ahead and ignore the AP poll if you want. Every other poll shows the race basicallly tied and Kerry with all the momentum. Tracking polls have him gaining, and even the Time poll that had Bush up 12 a month ago has it tied.
As for state polls, that poll for Colorado you dismiss is by Gallup, which is hardly pro-Dem. And most of the states Mr. Abramowitz cites have multiple polls, which he averages, hardly a Dem conspiracy tactic to boost Kerry.
The race is far from over, but Kerry’s debate performance has changed the dynamic, at least in the short term. Anyone who can’t see that is in denial.
Smooth: I suppose you also wouldnt change a thing about Iraq and that the economy is turning a corner. Are all of you in complete denial?
What happened to MO, NV, OR, & WV? These four states also appear to be swinging.
Jazz’s comments are somewhat valid, but let’s limit the reposting of an entire link.
-DS
There is no question, despite the protestations of Smooth Jazz to the contrary, that Kerry is on a roll. Smooth Jazz discounts as partisan polls that give him bad news like Zogby. Smooth Jazz should be aware that Zogby called both the 96 and 2000 elections accurately. While showing Kerry ahead in the battleground states Bush has a 1 point lead in the popular vote. Instead of trying to go to great lenghths to debunk polls that he doesn’t like he should go back to the right wing web sites and figure out what to do about it. It seems to me there is only one valid point to make about these polls and it comes out on the Democratic side: If the reports about new registrations are accurate in Democratic areas of battleground states and a reasonable number of these new voters turn out, pollsters just may be UNDERESTIMATING support for Kerry. Whatever the argument we will find out for sure on Nov. 2nd providing ALL legitimately cast ballots are counted this time.
Jazz, there’s some food for thought here. However, one word: hyperlink. Learn it. Live it. Embrace it.
Smooth Jazz-
That’s potentially interesting news on Ipsos. I went to the website, but would have to pay to actually use it.
As you point out, there report comes from a Bush partisan, so perhaps should be taken with of salt, though I’m sure he worked very hard at it.
It’s particularly interesting to me that he only selected 6 polls to look at as the non-Ipsos. At the RealClearPolitics site, I see 10 polls conducted post-survey, using a 3-way race. From these, I get a Bush lead of 48.0-45.9, which is a bit closer than the author’s 49.2-45.5. He wouldn’t by any chance be inclined toward cherry-picking would he? I’m perfectly willing to believe that Bush is up by 2.1% at this point. In fact, if I add in the two Ipsos polls (using two-way numbers from the AP one, since they seem not to have gone three-way), only narrows it to 47.6-46.3. If he’s interested in fighting over a difference of less than a percent in the Bush lead, he should be my guess. Seems like a sign of desparation to me, though.