Trump Is Dashing MAGA's Biggest Populist Dreams

Donald Trump works behind the counter during a campaign event at McDonald's restaurant on October 20, 2024 WASHINGTON — Billionaire Donald Trump styles himself a populist champion of the working class, but that message doesn’t seem to be translating into his economic policy proposals just yet. The president’s allies in the Make America Great Movement have long suggested Trump, who won both his elections with the backing of working-class voters, would transform the Republican Party from the party most closely aligned with big business to one dedicated to helping the little guy. But the “big, beautiful bill” percolating on Capitol Hill — the centerpiece of the president’s economic agenda — shows Trump tossing aside their advice and mostly sticking with the Republican establishment.Republicans are preparing a $5 trillion package of tax cuts, with favourable provisions for the wealthy, likely to be paired with deep cuts to Medicaid and food benefits relied on by vulnerable Americans. MAGA allies have pushed for the package to become more populist, insisting on a need to hike taxes on the wealthy and protect health care programs. But Trump has seemingly shot down both those dreams in recent days. On Wednesday, Trump dismissed the idea of raising taxes on millionaires. “I think it would be very disruptive because a lot of the millionaires would leave the country,” Trump told reporters at the White House. “You lose a lot of money if you do that.”And in an interview with Time Magazine, Trump dismissed the idea that the Republican Party’s budget plans would result in Medicaid cuts. “They’re going to look at waste, fraud, and abuse,” Trump insisted. He added: “Nobody minds that.”As Republican lawmakers have demonstrated for the past few months, all manner of Medicaid cuts — from an across-the-board reduction of federal spending on the program to specific “work requirements” cutting benefits for the unemployed — can be categorised as waste, fraud and abuse. The one area where Trump has dabbled in economic populism so far is his chaotic embrace of widespread tariffs, which he insists will eventually lead to a revitalisation of American manufacturing. So far, however, the tariffs appear more likely to hike prices for millions of American consumers, drain retirement accounts and threaten the lives of countless small businesses, while large corporations like Apple request and receive tariff exemptions.At the heart of the debate is the tension between one of the biggest pillars of longstanding Republican Party orthodoxy — lower taxes — and many of Trump’s populist promises that helped win him the presidency. On the campaign trail last year, Trump vowed to eliminate taxes on tips and Social Security. He also promised to provide free IVF treatments. None of that has happened yet, though his administration hopes to get those proposals into the legislative package Republicans are writing.Trump’s former White House adviser, Steve Bannon, has been saying for months that taxing the rich is good politics for Republicans, since it would undercut “oligarchy” arguments from the likes of Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.). He expressed disappointment at the president’s suggestion that higher taxes would cause rich people to turn their backs on America. “Mr. President, they’re not going to leave the country. Call their bluff. If you want to leave over you’re paying your fair share of taxes, then there’s the exit,” Bannon said in response to Trump on Wednesday. Bannon also offered a more practical reason for Republicans to tax the rich: It would help them avoid jacking up federal budget deficits, something they’ve said is downright morally wrong. Even with steep cuts to Medicaid and other programs, the budget Republicans have outlined doesn’t come close to offsetting the multitrillion-dollar deficit impact of the tax cuts they’re considering.“Bottom line, math does not work if you give the tax break of no tax on tips, no tax on overtime, and no tax on Social Security. The numbers don’t work,” Bannon said. Bannon reckoned some three dozen House Republicans would go along with a tax hike, though the idea has not received public support from hardly anyone except Rep. Andy Harris (R-Md.), chair of the right-wing House Freedom Caucus, who said he would support restoring the 39.6% top marginal rate, which Republicans temporarily lowered to 37% during Trump’s first term.The reality is that, even though Republicans were winking at the idea and leaving the door open, it stood very little chance of becoming reality. House leadership is opposed to it, and so are a number of key Senate Republicans. “We have been working against that idea,” House Speaker Mike Johnson (R-La.) said this week. “I’m not in favor of raising the tax rates because our party is the group that stands against that, traditionally.”Trump’s remark on Wednesday did not amount to a definitive statement ruling out any tax increase at all, but it followed some more ambiguous messages that recently wafted out of the White House. Republican senators who met with Trump this month told Semafor, for instance, that the president said he was open to a tax hike on the highest earners. And in a message weirdly given to former House Speaker Newt Gingrich this week, Trump said he would “love the idea of a small increase” but that it would be terrible politics for Republicans. Trump made similar comments in an interview this week with Time Magazine. A White House spokesperson did not respond to requests for clarification of the president’s position this week. Garret Watson, director of policy analysis at the conservative-leaning Tax Foundation, said it’s possible a slightly higher top marginal tax rate will become more appealing to Republicans when they’re crunching numbers on their budget bill, and they would like to add a few hundred billion dollars less to the national debt. “I wouldn’t completely rule it out, especially if you have folks in the Freedom Caucus and elsewhere who are more open to it,” Watson said in an interview. He suggested Republicans could also look at tightening the corporate write-offs for tax payments to state and local governments, an idea that’s gained currency this year. Democrats have little power to block the tax cut package if Republicans stay united and approve it under the so-called reconciliation process in the Senate. But that hasn’t stopped them from hammering the Republican Party over the expected cuts to Medicaid.“Donald Trump and Republicans in Congress are just fine slashing health care and food assistance for millions of Americans, but they apparently draw the line at asking giant corporations and the wealthiest Americans to pay their fair share,” Sen. Elizabeth Warren (D-Mass.) told HuffPost. “Republicans’ agenda is simple: Billionaires win, families lose.”Trump has said he wouldn’t touch Medicaid, the health care program for 70 million low-income Americans that right-wing populists have said should remain unscathed. But Speaker Johnson and other Republicans have used “waste, fraud and abuse” to encompass a range of Medicaid policies that aren’t actually waste, fraud or abuse. “We have to eliminate people on, for example, on Medicaid who are not actually eligible to be there — able-bodied workers, for example, young men who are — who should never be on the program at all,” Johnson said last week, signaling cuts to benefits for unemployed adults whose legitimate enrollment would simply be rebranded as waste, fraud or abuse. Republicans have also suggested they’d seek to reduce the share of Medicaid spending covered by the federal government. In that scenario, states would do the direct cutting. Twelve states have laws that would automatically cut their own spending in response to a reduction in the share of costs covered by the federal government, and more states could follow, potentially resulting in as many as 20 million people losing benefits. Republicans in Congress could pretend to have clean hands. Here’s how Rep. Austin Scott (R-Ga.) explained it on Fox News this week: “Nobody would be kicked off Medicaid as long as governors decided they wanted to continue to fund the program.”Related...Trump Promised Lower Food Prices On Day 1 – 99 Days Later, He Has Delivered The OppositeTrump Appointee Is Going After Wikipedia For Allegedly Spreading ‘Propaganda’Donald Trump Says Putin 'Maybe Doesn't Want To Stop The War' Following Talks With Zelenskyy

Comments

Breaking news

Major route north closed after crash near Dunblane

Virginia Guiffre's old social media post claiming she is not suicidal sparks conspiracy theories as she becomes Jeffrey Epstein's third victim to die

I'm a travel expert - these are the best clothes to wear to the airport for style and comfort

From a deadly brush with typhoid to a shock scurvy diagnosis - the stars who have suffered from medieval diseases - just like Josie Gibson

Reeves says she wants young Brits to be able to work freely in the EU in latest sign Labour will do reciprocal deal allowing under-30s into UK

Inside Britain's fastest growing wine region: How Yorkshire is producing 120,000 bottles a year... but what do drinkers think?

Incredible footage from inside raging inferno as firefighter tackles blaze

Sickening two words Vancouver festival suspect said to crowd as he was arrested for 'killing 9 with his SUV'

Harry Potter star Rupert Grint is a dad again! Actor 'secretly welcomes second child' with girlfriend Georgia Groome five years after birth of daughter Wednesday

Liverpool stars arrive at Anfield through clouds of red smoke as fans prepare for Premier League title party ahead of Tottenham clash

New bodycam reveals the shocking moment Weezer bassist's wife was shot by cops in her LA backyard

Crucial laundry rule you might be breaking without even realising it

Rise of the WEDNESDAY wedding! Weekday nuptials double in popularity as cash-strapped couples avoid tying the knot on a Saturday

Locals in picturesque village blast 'hideous' 7ft metal fence nicknamed the 'Great Wall of Clydach' looming over their homes

Expert reveals why removing self checkouts won't work for all supermarkets - as one chain says ditching them has made customers happier

Race Across the World contestant reveals what REALLY happens when they get to each checkpoint hotel in moments hidden from show

How Josie Gibson treated her medieval health condition with celebrity-adored holistic retreat after shock diagnosis

How gangland hitmen are firebombing homes and terrorising the streets of a UK city as ex-undercover detective warns 'organised crime has taken over'

Price of popular chocolate bars to soar in the UK - is YOUR favourite included in the list?

Geri Horner is embroiled in another battle with neighbours over plans to build £30,000 horse exercise pen at her Grade II-listed country mansion

Naomi Campbell, 54, declares she will NEVER attend the MET Gala again because she feels 'too old'

Fathers of Southport victims crosses London Marathon finish line after gruelling 26.2-mile race in memory of their murdered daughters

Elizabeth Hurley's pals claim she could be set to 'MARRY' Billy Rae Cyrus amid whirlwind romance as secret to their shock new relationship is 'revealed'

Brave act of mystery hero who foiled Youth Demand's plot to RUIN the London Marathon men's elite race

Excited Archie has sweet conversation with Meghan Markle as they feed koi in their fish pond during 'cosy' weekend at home

John Terry races to the finish line with bleeding nipples as red-faced Kelly Brook and Joel Dommett struggle in the heat alongside a host of stars running the 2025 London Marathon

Leeds community in shock over attack involving crossbow

Comments

Similar News

Trump’s Meeting With Zelensky Offers Ukrainians a Glimmer of Hope

Trump Is Breaking the Rule That Every Barroom Brawler Knows

Donald Trump's Approval Rating Plummets To New Low Ahead of 100 Days

Trump’s Tariffs Prompt Wave of Lawsuits

Donald Trump Rages at Judges After Deportation Setback: 'No Retribution'

Why Trump faces awkward reckoning 100 days into the job

Elderly Americans Face Crisis Amid Trump Immigration Crackdown

Trump Appointee Is Going After Wikipedia For Allegedly Spreading ‘Propaganda’

Trump Promised Lower Food Prices On Day 1 – 99 Days Later, He Has Delivered The Opposite

White House Correspondents’ Dinner Parties Go on Without Trump or Big Celebrities

Trump’s Tariffs Squeeze an Already Struggling British Car Industry

Lip reader reveals Trump’s five-word warning to Macron moments before mini-peace summit with Zelensky at Pope’s funeral

International Students Worry Even as Trump Temporarily Restores Some Legal Statuses

A stunning reversal of fortunes in Canada's historic election

Melania Trump 'body double' theory reignited following Pope Francis' funeral appearance

Texas Wine Is Soaring in Popularity

With a Bounty on His Head, a Critic of China Runs in Canada’s Election

Washington’s Besieged Journalists Raise a Glass, Darkly

Trump promised ‘full transparency’ over Epstein files. Are more documents coming?

Breaking news

Major route north closed after crash near Dunblane

Australian activist suggests Prince Andrew accuser Virginia Giuffre was killed

Dad charged after ‘precious boy’, 14, killed in horrific M6 crash

Locals say life is ‘horrendous’ after village cut in half by 700m HS2 tunnel

Jet2 flight forced to land mid-air after unruly passengers cause disruption

Hundreds flock to abandoned sofa after it becomes village’s biggest tourist attraction

‘Certainly wasn’t perfect’ – Amanda Balionis reveals struggles to get back to normal routine after Masters

There could be no better answer to late Pope’s prayers than a lasting and just peace in Ukraine

Key suspect in the Kim Kardashian $10m Paris robbery 'dies suddenly' taking secrets of heist to his grave

Virginia Guiffre's old social media post claiming she is not suicidal sparks conspiracy theories as she becomes Jeffrey Epstein's third victim to die

I'm a travel expert - these are the best clothes to wear to the airport for style and comfort

Marathon runners 'at risk of death' experts warn - alert after 13 deaths

I travelled to Antarctica and the wildlife was amazing - but the costly £10k trip included some dangerous surprises

European country opens 'little London' theme park area - but Brits are pointing out the inaccuracies

From a deadly brush with typhoid to a shock scurvy diagnosis - the stars who have suffered from medieval diseases - just like Josie Gibson

Reeves says she wants young Brits to be able to work freely in the EU in latest sign Labour will do reciprocal deal allowing under-30s into UK

Inside Britain's fastest growing wine region: How Yorkshire is producing 120,000 bottles a year... but what do drinkers think?

Incredible footage from inside raging inferno as firefighter tackles blaze

Sickening two words Vancouver festival suspect said to crowd as he was arrested for 'killing 9 with his SUV'

Harry Potter star Rupert Grint is a dad again! Actor 'secretly welcomes second child' with girlfriend Georgia Groome five years after birth of daughter Wednesday

Liverpool stars arrive at Anfield through clouds of red smoke as fans prepare for Premier League title party ahead of Tottenham clash

New bodycam reveals the shocking moment Weezer bassist's wife was shot by cops in her LA backyard

Crucial laundry rule you might be breaking without even realising it

Rise of the WEDNESDAY wedding! Weekday nuptials double in popularity as cash-strapped couples avoid tying the knot on a Saturday

Locals in picturesque village blast 'hideous' 7ft metal fence nicknamed the 'Great Wall of Clydach' looming over their homes

Expert reveals why removing self checkouts won't work for all supermarkets - as one chain says ditching them has made customers happier

Race Across the World contestant reveals what REALLY happens when they get to each checkpoint hotel in moments hidden from show

How Josie Gibson treated her medieval health condition with celebrity-adored holistic retreat after shock diagnosis

How gangland hitmen are firebombing homes and terrorising the streets of a UK city as ex-undercover detective warns 'organised crime has taken over'

Price of popular chocolate bars to soar in the UK - is YOUR favourite included in the list?

Fans spot awkward detail from Chris Eubank Sr's interview after Eubank Jr's epic win over Conor Benn

Chilling moment killer in bloodstained trainers collects pizza after stamping on his friend's head - as he is jailed

Geri Horner is embroiled in another battle with neighbours over plans to build £30,000 horse exercise pen at her Grade II-listed country mansion

Naomi Campbell, 54, declares she will NEVER attend the MET Gala again because she feels 'too old'

Inside Meghan Markle's animal kingdom: Duchess's growing farm including 100,000 bees and a chicken from Ellen DeGeneres

Flight attendant warns about common airport practice that may actually be putting you in danger

Students on booze trail 'thought crossbow thug was in fancy dress' moments before terrifying attack

Fathers of Southport victims crosses London Marathon finish line after gruelling 26.2-mile race in memory of their murdered daughters

Elizabeth Hurley's pals claim she could be set to 'MARRY' Billy Rae Cyrus amid whirlwind romance as secret to their shock new relationship is 'revealed'

Brave act of mystery hero who foiled Youth Demand's plot to RUIN the London Marathon men's elite race

Excited Archie has sweet conversation with Meghan Markle as they feed koi in their fish pond during 'cosy' weekend at home

John Terry races to the finish line with bleeding nipples as red-faced Kelly Brook and Joel Dommett struggle in the heat alongside a host of stars running the 2025 London Marathon

Leeds community in shock over attack involving crossbow

London Marathon 2025: Assefa sets women's record as Sawe wins men's race

SAS names reportedly available online for a decade

M&S online disruption a 'bruise' to reputation, analyst says

Car Plows Into Vancouver Festival, Killing People

Longevity Expert Said Women Should Be Able To Do 11 Push-Ups – And Experts Have Thoughts

Tory Frontbencher Accuses Trump And Farage Of 'Putin Apologism'

Catholic Church abuse survivors fear they’ve ‘no hope’ of justice after Pope Francis’ death and urge secret docs release

‘Tactile’ Trump’s secret ‘touching’ moments with Melania revealed as she marked birthday at Pope’s funeral

Brit tourist, 21, vanishes after night out with pals in Madrid as friend shares desperate appeal

Police search for neo-Nazis who celebrated Hitler’s birthday in UK pub with swastika cake, flags & ‘Fuhrer’ footie shirt

Woman sexually assaulted on busy train during rush hour as cops release CCTV in manhunt

Teen dies more than a week after being hit by van

Thousands of kiltwalkers raise millions for charity with record hike

Neo-Nazis celebrate Hitler’s birthday with swastika cake at a pub

What happened to the third chair at Trump and Zelensky’s Vatican meeting?