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.
All four polls on 2.004 show a trend, unfortunately, of Kerry peaking, and now the momentum shifting to Bush. I just don’t see how you are getting a “Kerry won” out of the third debate. It lookslike after the second debate Bush bottomed out and then it’s turned and now Bush has the upward momentum. I’m not happy about it but the figures are there. in the Zogby poll, but parallel in the others.
Interesting, then, that the blaring headline on CNN this morning is that Bush has a five point lead, which seems to come from the Zogby/Reuters poll- and actually says the exact opposite of DCorps. Zogby is claiming that Kerry is stuck at 44% while Bush is the one persuading the undecideds.
The only reason I watched these debates was to see whether independents and those on the left of center would be energized by Kerry. To me, understandably biased, it looks like Kerry has done well in clarifying his message, and stood up well to a lot of bashing by the broken-record we have as president.
I’d also like to plug the volunteer page of Kerry’s website, http://calls.johnkerry.com, which lists phone numbers of like-minded folks in swing states. They’re encouraging people to call them and tell them about volunteer opportunities in their areas.
Correy
My pet theory — Kerry won the pre-debate “expectations game” because of the GOP’s massive, months-long negative campaign against him. Even though I was planning to for Kerry, I had never seen him in action before. And I was surprised by how strong, calm, and “presidential” he looked. I had not expected to be impressed, and that’s because the Republicans did such an effective job of attacking him before the debates.
There were probably millions of people watching the debates who had never seen Kerry for an extended period of time — all we knew were soundbites, media impressions, and Republican attacks.
I think the next week will be The Moment of Truth.
*If* Kerry takes the lead, I think even the ‘Wingers will start to worry a lot about this election. On the other hand, I would be perplexed and disappointed if “Shrub” actually gains.
The media reaction to the third debate was interesting. THE WEEKLY STANDARD, NATIONAL REVIEW etc. claim “Shrub” won hands down whereas the rest (including all the opinion polls) felt Kerry was better. I suspect both assessments are honest, since they indicate “Shrub” is great at firing up his base but Democrats and a majority of independents favor Kerry.
MARCU$