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.
Ed: A lot of what’s seen in these polls just confirms their limited use at this early point, especially when the nomination hinges on something as weird as the Iowa caucuses.
The nuance that Tiparillo talks about emphasizes an oft-repeated point that seems hackneyed but also makes sense: Obama’s voters, recuited by Oprah or not, are not good bets for caucusing in Iowa, and they will likely only turn out in NH if Obama has momentum coming in. Basically Obama has the Bill Bradley voting base, and I haven’t seen much from the Obama campaign that indicates they’ll be much better than the Bradley campaign at targeting them and bringing them out to vote.
Unlike Bradley, however, Obama isn’t so naturally strong in NH that he can use it as a firewall against losing Iowa. If Obama loses Iowa, he has enough money to stay on TV until March, but it would be an ultimately vain Bradley-esque denoument.
These polls say Edwards is doing better in SC. At this stage in the campaign, this can only reflect Edwards’s recent TV buy there. Polls really echo TV buys pretty well (see the inflated Richardson numbers in IA and NH). It’s more likely that Edwards has always had a fairly entrenched but small base there, that his TV buys haven’t moved him much, and that he is buying TV in SC to maintain what he has in case he wins IA and loses NH. Maybe he bought the TV to make people think he’s confident in his internal Iowa numbers. The same dissonance with polls is possible in Nevada, which is a caucus: Even if the only people who show up are HERE members, polls will inevitably reflect a much wider universe. (Maybe most importantly, no one knows who the Nevada caucusgoers are for sure, but there probably won’t be many of them, and it may not matter who wins.) In any case, the poll only tells a small part of the story.
Even if everyone realizes the CW is overreliant on polls, they are such attractive reference points that it’s impossible to put them in realistic perspective.
Iowa has always been decided by field organization and this time will be no different. Obama has always looked like a third-place candidate in Iowa because he just doesn’t have enough precincts and his turnout strategy is oddly Howard Dean-like. Thus he has an outsized place in the narrative of this campaign.
The most crucial narrative is the Edwards vs. Hillary battle on the ground in Iowa. Hillary has the decided edge here.
Once Iowa is over, the campaign finally takes shape in time for open primaries, and polls start meaning a lot more.
Tiparillo:
I was surprised, too, though it may be a good reminder that despite Edwards’ faithful channelling of netroots rhetoric, his actual base of support is among rank-and-file union folk and/or older Democrats who aren’t likely to be that attracted to Obama. From that perspective, it’s also not surprising that Obama supporters who perceive HRC as the ultimate blast from the past would prefer Edwards in a one-to-one with Hillary.
Ed Kilgore
Wow – I have a hard time believing that the Edwards voters will break that dramtically for Clinton.
My impression from a limited sample is that Edwards voters – much like the cnadidate – are not fans of Clinton at all.
But this poll is about New Hampshire in particular so…..