U.S. Budget & OBBB | OCT 1 - Gov’t Shutdown Begins

[nycfan]

Gingrich believes Trump has taken a tax hike on the wealthy off the table​

Some Republicans have been flirting with such a move to pay for President Donald Trump’s “big, beautiful bill.”

https://www.politico.com/news/2025/04/22/gingrich-says-proposals-to-raise-income-taxes-are-dead-00305044

“…
The comments Gingrich shared come as the GOP has been flirting with a hike in the tax rate on the wealthiest Americans to help finance their party-line border, energy and tax bill. The idea is anathema to many prominent conservatives, including Gingrich, who have long campaigned to prevent tax hikes on Americans across the income spectrum.

House Speaker Mike Johnson (R-La.) and other top Republicans have also thrown cold water on the idea.

Nonetheless, deficit hawks in the House, such as Freedom Caucus Chair Andy Harris (R-Md.), have broached the idea.

Sen. Chuck Grassley (R-Iowa) likewise said at a town hall last week that the idea was on a Finance Committee “working sheet” of tax proposals. The increase could help pay for an expansion to the Child Tax Credit, Grassley said. …”

 

[nycfan]

 

[nycfan]

“… States have developed all kinds of financing gimmicks designed to increase D.C.’s share of the funding and reduce their own.

Republicans have talked about prohibiting some or all of these gimmicks, and they have a pretty good argument many nonpartisan analysts support: These mechanisms allow states to shirk some of their responsibility for the program. At the same time, the entire health care economy works this way—with all kinds of convoluted workarounds. Take away this one, and it’s virtually inevitable some states couldn’t or wouldn’t make up the funding.

Instead, they would cut back their Medicaid programs in one way or another, leaving more people unable to get affordable care. …”

 

[nycfan]

“… States have developed all kinds of financing gimmicks designed to increase D.C.’s share of the funding and reduce their own.

Republicans have talked about prohibiting some or all of these gimmicks, and they have a pretty good argument many nonpartisan analysts support: These mechanisms allow states to shirk some of their responsibility for the program. At the same time, the entire health care economy works this way—with all kinds of convoluted workarounds. Take away this one, and it’s virtually inevitable some states couldn’t or wouldn’t make up the funding.

Instead, they would cut back their Medicaid programs in one way or another, leaving more people unable to get affordable care. …”

 

[nycfan]

 

[nycfan]

 

[lawtig02]

Ear plugs. Lol.

 

[gtyellowjacket]

Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally finished his math homework.

Trump urged US House Speaker Johnson to raise top tax rate, sources say

U.S. President Donald Trump privately urged House Speaker Mike Johnson during a phone call on Wednesday to raise the tax rate on the wealthiest Americans and close the carried interest loophole for Wall Street investors, two people familiar with the conversation said on Thursday.

www.reuters.com

Very little support from Congressional Republicans at this early stage but I suspect that could change with a truth social post or two.

 

[nycfan]

Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally finished his math homework.

Trump urged US House Speaker Johnson to raise top tax rate, sources say

U.S. President Donald Trump privately urged House Speaker Mike Johnson during a phone call on Wednesday to raise the tax rate on the wealthiest Americans and close the carried interest loophole for Wall Street investors, two people familiar with the conversation said on Thursday.

www.reuters.com

Very little support from Congressional Republicans at this early stage but I suspect that could change with a truth social post or two.

Republicans in the Senate have floated this already and been shot down, but ebb and flow I guess.

Would be interested in the math on how much that helps, though. The gap in their budgeting so far has been enormous.

On a related note, what is politically tricky here is that unless they come through on other working and middle class tax cuts, the working and middle class voter won’t actually feel the reduced tax rate — from their perspective, things will remain same. The rates would revert to Obama era rates if nothing is done but that can be tough to effectively message.

 

[superrific]

Republicans in the Senate have floated this already and been shot down, but ebb and flow I guess.

Would be interested in the math on how much that helps, though. The gap in their budgeting so far has been enormous.

On a related note, what is politically tricky here is that unless they come through on other working and middle class tax cuts, the working and middle class voter won’t actually feel the reduced tax rate — from their perspective, things will remain same. The rates would revert to Obama era rates if nothing is done but that can be tough to effectively message.

I suspect that raising taxes on "the rich" means doctors and lawyers are in the cross-hairs.

The rich they don't want to hit, they will exclude like they did in 2017. That provision of the tax code, that lets passive income get a 20% credit but not professionals who labor, was serious bullshit.

 

[Centerpiece]

But cake. Do we get cake?

 

[gtyellowjacket]

Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally running into math.

Trump tells Congress to raise taxes on the rich in budget bill​

Republicans in the Senate have floated this already and been shot down, but ebb and flow I guess.

Would be interested in the math on how much that helps, though. The gap in their budgeting so far has been enormous.

On a related note, what is politically tricky here is that unless they come through on other working and middle class tax cuts, the working and middle class voter won’t actually feel the reduced tax rate — from their perspective, things will remain same. The rates would revert to Obama era rates if nothing is done but that can be tough to effectively message.

One of Trump's proposals is "pushing to raise the top tax rate from 37% to 39.6% for individuals earning $2.5 million and higher or joint filers earning $5 million, with carve-outs for small businesses, according to one source."

Another is to plug the carried interest loophole for private equity.

I'm not against it but it's not likely to raise that much money. The carried interest proposal would cut the deficit by $13B over 10 years. That's a drop on the bucket. Just not sure how many people make $2.5M a year. That might be .01% or even less.

 

[nycfan]

 

[nycfan]

More interesting to me, a plurality supports not extending the tax cuts …

 

[HintonJamesHeel]

Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally running into math.

Trump tells Congress to raise taxes on the rich in budget bill​

One of Trump's proposals is "pushing to raise the top tax rate from 37% to 39.6% for individuals earning $2.5 million and higher or joint filers earning $5 million, with carve-outs for small businesses, according to one source."

Another is to plug the carried interest loophole for private equity.

I'm not against it but it's not likely to raise that much money. The carried interest proposal would cut the deficit by $13B over 10 years. That's a drop on the bucket. Just not sure how many people make $2.5M a year. That might be .01% or even less.

The carried interest loophole should be closed asap and the fact that so many on both sides of the aisle oppose closing it shows how corrupt the whole thing is.

 

[Duke Mu]

Prolly half of MAGA Rep. families are on Medicaid.

 

[gtyellowjacket]

The carried interest loophole should be closed asap and the fact that so many on both sides of the aisle oppose closing it shows how corrupt the whole thing is.

Yeah. Trump hates it too which is weird. He spoke out against it in his first term. I wonder if some hedge fund guy stole one of his girlfriends or something.

He doesn't mind getting capital gains treatment for his and others work in real estate development but he does not like private equity getting that tax treatment for their work.

 

[BlueSmoke]

Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally running into math.

Trump tells Congress to raise taxes on the rich in budget bill​

Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally running into math.

Trump tells Congress to raise taxes on the rich in budget bill​

Just not sure how many people make $2.5M a year. That might be .01% or even less.

That might be .01% or even less.

In 2022, there were 27,261 tax returns with incomes over 5,000,000 for a total Adjusted Gross Income of 1,413,000,000.
Not sure on single , Head household, or filing separate over 2.5 Million. But those from 2,000,000 to 5,000,000 single were 87,517 tax returns at something less then 80,000,000,000. Not many in Head of household or separate.

So Trump may be getting an extra $40,000,000,000.

 

[superrific]

The carried interest loophole should be closed asap and the fact that so many on both sides of the aisle oppose closing it shows how corrupt the whole thing is.

Bullshit. The Dems were ready to close it throughout 2021-22. There was one Dem who opposed closing it: Kyrsten Sinema. Because all Pubs opposed it, and she opposed it, the votes were not there to pass.

All Pub Senators + one Dem-> independent Senator is not "so many on both sides of the aisle."

 

[gtyellowjacket]

In 2022, there were 27,261 tax returns with incomes over 5,000,000 for a total Adjusted Gross Income of 1,413,000,000.
Not sure on single , Head household, or filing separate over 2.5 Million. But those from 2,000,000 to 5,000,000 single were 87,517 tax returns at something less then 80,000,000,000. Not many in Head of household or separate.

So Trump may be getting an extra $40,000,000,000.

Thank you for finding those numbers. I assume all that is income and not capital gains?

$40 billion/year won't get us there but it is a significant amount of money. Hope it passes.