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.
Here’s another idea for reversing SCOTUS’ ruling on Citizens United v. FEC;
A diarist named Smintheus posted on unbossed.com a very quick and simply remedy for this power-grab by corporations;
Congress should prohibit any corporation from engaging in this new political spending if it has any non-American shareholders, or owners. Because after all, foreigners have no 1st amendment protections.
This brilliant idea was picked up by PLS who posted the diary “How to hoist the SCOTUS on their own petards!!!” on Daily Kos. This stroke of genius not only undoes SCOTUS’ treasonous decision, it seriously weakens the hold corporations CURRENTLY have over our democracy.
This is AN EXCELLENT way to punish SCOTUS and the Republicans for attempting a coup of our government on behalf of corporations.
Here is the statute upon which the tactic succeeds;
U.S. Code § 441e. Contributions and donations by foreign nationals
(a) Prohibition
It shall be unlawful for—
(1) a foreign national, directly or indirectly, to make—
(A) a contribution or donation of money or other thing of value, or to make an express or implied promise to make a contribution or donation, in connection with a Federal, State, or local election;
(B) a contribution or donation to a committee of a political party; or
(C) an expenditure, independent expenditure, or disbursement for an electioneering communication (within the meaning of section 434 (f)(3) of this title); or
(2) a person to solicit, accept, or receive a contribution or donation described in subparagraph (A) or (B) of paragraph (1) from a foreign national.
(b) “Foreign national” defined
As used in this section, the term “foreign national” means—
(1) a foreign principal, as such term is defined by section 611 (b) of title 22, except that the term “foreign national” shall not include any individual who is a citizen of the United States; or
(2) an individual who is not a citizen of the United States or a national of the United States (as defined in section 1101 (a)(22) of title 8) and who is not lawfully admitted for permanent residence, as defined by section 1101 (a)(20) of title 8.
Here is the above mentioned section 434 (f)(3)
3) Electioneering communication
For purposes of this subsection—
(A) In general
(i) The term “electioneering communication” means any broadcast, cable, or satellite communication which—
(I) refers to a clearly identified candidate for Federal office;
(II) is made within—
(aa) 60 days before a general, special, or runoff election for the office sought by the candidate; or
(bb) 30 days before a primary or preference election, or a convention or caucus of a political party that has authority to nominate a candidate, for the office sought by the candidate; and
(III) in the case of a communication which refers to a candidate for an office other than President or Vice President, is targeted to the relevant electorate.
(ii) If clause (i) is held to be constitutionally insufficient by final judicial decision to support the regulation provided herein, then the term “electioneering communication” means any broadcast, cable, or satellite communication which promotes or supports a candidate for that office, or attacks or opposes a candidate for that office (regardless of whether the communication expressly advocates a vote for or against a candidate) and which also is suggestive of no plausible meaning other than an exhortation to vote for or against a specific candidate. Nothing in this subparagraph shall be construed to affect the interpretation or application of section 100.22(b) of title 11, Code of Federal Regulations.
– end of code description –
Piecing together the most salient parts of the above statute, we have the following;
“It shall be unlawful for a foreign national, directly or indirectly, to make a contribution in connection with a Federal, State, or local election, or expenditure for an electioneering communication. The term “electioneering communication” means any broadcast, cable, or satellite communication which refers to a clearly identified candidate for Federal office, is made within 60 days before a general, special, or 30 days before a primary or preference election.”
The limiting phrase in this law is “which refers to a clearly identified candidate for Federal office.” Because the Citizens United v. FEC ruling refers to non-identified candidate communications, what Congress needs to do is extend this statute to include ANY elections-related communications. An example of why this extension seems very reasonable would be in order to prevent a foreigner from an oil producing country from bombarding U.S. television shows with ads that claim “Global warming is just a hoax; keep buying our oil.”
Smintheus’ solution seems very promising. We should explore it a bit further, and if it proves solid, quickly take action on it.
With their ruling in favor of Citizens United v. FEC, the Conservative members of the Supreme Court have committed treason far more dangerous and egregious than their having stolen the 2000 election for Bush. This time they have gone too far by handing our democracy to corporations. The way to remedy this treason is simple and straightforward.
The first step is for Congress to end or fix the filibuster rule so that Republican and Blue Dog Senators can no longer usurp majority rule in the Senate, and prevent the second step.
The second step is for Congress to create two new Supreme Court seats, increasing the total number of justices from nine to eleven. FDR failed in this in the 1930s because he tried to create SIX new justices, and because he was not facing as great an assault on our democracy as we are now. The American People would support Congress’s appointing these two new justices in order to preserve our democracy.
The third and final step is for someone to challenge the new ruling in the courts and have the suit move its way up to the Supreme Court. I’m not sure if that can happen before the Citizens United v. FEC decision allows corporations to hijack the 2010 election. If so, such a delay is not an acceptable option.
Until Citizens United v. FEC is overturned, Obama and the Democratic Congress have a course of action. According to the Constitution, the President is not bound by Supreme Court decisions. There is a famous instance when the Supreme Court rendered a decision and a president said something to the effect that; “Well, you’ve made your decision. Now try to enforce it.” I think it was FDR, but I’m not sure on that.
SCOTUS’ handing our democracy to corporations with this decision can and will, if we let it stand, defeat any and every major progressive initiative after the 2010 elections. If this decision stands, we risk losing both our Senate and House majorities.
We need to put aside every other initiative right now and concentrate our power on defeating this decision by advocating for Congress to end the filibuster, create two new SCOTUS seats, and then have the new SCOTUS reverse the decision. We need to alert the public about this assault on our democracy so that they will fully back Congress’s decision to end the filibuster in order to create the two new seats.
We cannot do everything at once. If we try to assume a business-as-usual approach and continue to work on many other initiative while also working on this one, we risk failing. That is not an option we can afford.
WE NEED TO TABLE ALL OTHER INITIATIVES UNTIL WE GET THIS JOB DONE.
The vast majority of blog posts on all of the Liberal/Progressive sites for the next several weeks should be about getting this done. We should organize our efforts so that some blogs are focusing on some parts of this, and other blogs are focusing on others. We need to organize and fight like our democracy depended on it, because it does.