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.
“Liar, Krugman of NYT, blasts McCain With the Truth”
http://www.dailykos.com/story/2008/9/12/01115/6334/278/595686
Republicans Hijacked 911, by Keith Olberman, Courage to Speak Truth!
http://www.jedreport.com/2008/09/special-commen…
How many more Journalists & Reporters will show courage and begin to do their duty and Inform the public as to truth and falsity? We should never again be lied into a False & Phony war by a President you want to have a beer with! Republicans strong on National Security? I don’t think so, after all 911 happened on their watch, but they have been allowed to distort the facts and public perception that it is the Democrats who are weak on national security! They have failed to properly enact the 911 Commissions recommendations which would make us a lot safer! Politicans who willfully and intentionally lie to the public are engaged in a betrayal of the public trust and such distortion should be deemed unethical and in some cases, criminal! We need a Media to be the third-wheel of democracy again and not a parrot of those who are corrupt, unless they are corrupt too!
Republicans are just as dismal on economics. It is an outrage or should be that the government can give millions of dollars to CEO’s from the failed Fannie Mae & Freddie Mac and yet, cannot give a second stimulus check to American citizens in these hard economic times? Republicans say No to a second stimulus while the Democrats say Yes to a second stimulus! Is the Republican Congress working for CEO’s or are they working for you, the people? We need a Government and a Congress to work for the People, not lie to the people, not bail out their own special interest groups and leave the people hanging. We need a government to put the burden of taxes on the rich where they belong and stop putting the tax burdens on the middle class and poor, those who can least afford it. We need a government who will put money into education and make that a national priority again, both lower and higher education and give more Pell Grants and less loans so that young people can once again achieve a higher education, get a good job and lift everybody up out of poverty. We need action and not more spin, talk and lies. We need a Congress who will vote Yes to bridges, roads, schools, health care. Who will invest in America and not in Iraq and in themselves and their special interest groups. America is dying. We need Change!
And we need to play just as dirty in order to win, or we will fall back into out usual form..that of losers.
The moment McCain clearly pulled into the lead in the Republican primaries last winter there were three predictions that could be made with absolute certainty.
1. That McCain’s unique biography would have tremendous appeal for those voters who didn’t know his history and choose their candidate based on personality rather than positions on major issues.
2. That, if a “high road” campaign did not seem to be doing the job by summer, Bush-Rove operatives would be called in to run a nasty, “swift-boat” style media campaign for the fall.
3. That religious and cultural conservatives would be extremely unhappy and unenthusiastic with McCain as the candidate but – recognizing the huge threat posed by Democratic victory – – would somehow rationalize a way to actively support him after the conventions.
Seen in this light, the only real surprises in this campaign have been (1) that Obama actually proved himself to be extraordinarily compelling and attractive as a candidate and orator – much more than anyone anticipated last February – and (2) that John McCain found a Vice-Presidential choice who is every bit as “rock star” mediagenic and attractive to her natural conservative audience as Obama is to his.
Now sure, it would have been lovely if McCain had continued to run a lackluster campaign, chose a conventional and very boring vice-president, refused to go nasty and negative and continued to reject the religious and cultural conservatives as “agents of intolerance” – but was there really any reason to think this would actually happen?
Not a chance. After a very slow start, the Republicans are just reverting back to form – avoiding the issues, blatantly lying about their opponents, appealing to “Us vs. Them” rhetoric and stereotypes.
Let’s face it, aren’t these the tactics and isn’t this the battle we knew we’d be in from the very beginning.
Yeah it’s ugly, but it isn’t a surprise.