Congress
How Trump’s Very MAGA Tax Cuts Break with GOP Tradition
For decades, Republicans have extolled the virtues of removing loopholes and carveouts from the tax code, arguing it would make the system fairer and more efficient, while allowing for lower overall tax rates.
“The tax code is littered with hundreds of preferences and subsidies that pick winners and losers and create complexity,” House Republicans led by then-Speaker Paul Ryan and then-Rep. Kevin Brady, said in their 2016 tax plan. “Instead of free-market competition that rewards success, our tax code directs resources to politically favored interests, creating a drag on economic growth and job creation.”
Fast forward to the present day, and one thing is for sure: President Donald Trump’s One Big Beautiful Bill is not an exercise in tax simplification.
Instead, it began with a push to extend the party’s 2017 tax cuts — which despite some streamlining also introduced some complexity — and piled more on top, in line with a slew of presidential campaign promises. Add in a heavy dose of congressional politics, and the result was a sprawling and quirky piece of legislation that is distinctively Trumpy: lower taxes and a bigger pile of tax breaks.
“It’s certainly a departure from what Republicans were trying to do in 2017 and broadly a departure from what Republicans have been arguing for decades about tax reform,” Kyle Pomerleau, a senior fellow at the conservative-leaning American Enterprise Institute, told me.
The question, though, is not just whether doing your taxes is complicated and annoying. It’s whether that complexity serves a particular purpose. For example, a provision in the GOP bill allows businesses to deduct expenditures on machinery and equipment entirely from their taxes, which could both encourage investment and support Trump’s reindustrialization goals.
For other key parts of the bill, several economists I spoke with worried it is the worst of all combinations: increasing the debt to pay for tax breaks that lead to neither growth nor other economically useful outcomes.
“I don’t want to say it’s vote-buying because that’s probably a normative statement that is outside of my wheelhouse, but … there’s not a lot of pro-growth stuff,” said Kent Smetters, a University of Pennsylvania business professor who serves as the faculty director of the Penn Wharton Budget Model.
Take, for example, Trump’s popular campaign promises of no tax on tips and no tax on overtime. In some cases, those provisions simply reward people for their existing lifestyle. In others, it might lead businesses to restructure how they pay their employees.
It’s obviously great news either way for the employees who benefit. It’s just unclear why the government is choosing to reward these particular subsets of workers over others. (It is presumably not an accident that Trump promised this tax perk to voters as he was pushing in the last election to win Nevada, a state where many hospitality and gaming industry workers rely on tipped income.)
And cutting taxes without finding some way to offset the lost revenue — either by closing loopholes to broaden the scope of people and businesses that are taxed, like in 1986, or through some other method — leads to increased debt that can itself be a drag on growth. After all, investors are lending the money to the U.S. government rather than doing something else with it. And even after spending cuts, the new GOP tax law is still expected to add trillions to deficits over the next decade.
“The money has to come from somewhere,” said Alan Auerbach, a professor at the University of California at Berkeley.
In that sense, the tax cuts under President George W. Bush weren’t the ideal way to structure policy either, as they mostly just lowered rates while increasing the debt. But this bill? “It’s worse than the Bush tax cuts because the scale is so much bigger, and there’s a lot more weird stuff in it,” Auerbach said.
The gargantuan scale and eccentricity of the tax package is a reflection, above all, of the president who propelled it into law, and it reveals how much the Republican Party has changed under his leadership. In the 2016 GOP policy document, under Ryan and Brady’s direction, the party cited tax reform legislation passed in 1986 — which decreased the number of tax brackets, slashed deductions and lowered rates — as a guiding light, saying the party’s goal was to “replicate and build upon this achievement.”
But this is now the party of Donald Trump, not Ronald Reagan.
Trump, in a 1999 Wall Street Journal op-ed, referred to the bipartisan 1986 law as “an offense against the working man,” decrying the removal of certain deductions as “predictably disastrous.”
Now the Trump administration needs to defend the law and all its peculiarities.
Joe Lavorgna, who works at the Treasury Department as a counselor to Secretary Scott Bessent, said many critiques of the new law miss the point. A critical priority for Trump, he said, was avoiding the expiration of the 2017 tax cuts, which would have led to higher tax rates and therefore slower growth.
He said language that allows people to deduct the interest they pay on auto loans for American-made cars, for example, will help boost the goal of having a “vibrant, healthy” domestic car industry.
Lavorgna also said the provision removing taxes on overtime will lead to more output. “Anything that incentivizes people to work an extra hour because they’re not going to be taxed on it or be taxed at the same rate” creates benefits for the economy, he said. “It’s not a giveaway. They’re creating something.”
As for no tax on tips? That will “help people who have been under significant cost of living pressure,” he said.
Ultimately, what’s clear is that cutting taxes is still the centerpiece of the Republican Party — the rallying cry that could bring together a fractious governing coalition.
But tax reform? That conservative dream seems to have died quietly.
Congress
Trump apparently shares Tom Cotton’s phone number in push to make Daylight Saving Time permanent
President Donald Trump appeared to share Sen. Tom Cotton’s phone number in a Saturday morning social media post imploring the Arkansas Republican to get behind a bill to make Daylight Saving Time permanent.
“Almost everybody wants “The Sunshine Protection Act” to pass, except for Tom Cotton,” Trump wrote on Truth Social. “To the Great People of Arkansas, please let your Senator know it would be a GREAT Bipartisan WIN for the United States Senate, and for America, itself.”
The president has spent months personally pushing Senate Republicans to end the practice that sees Americans change their clocks twice a year, cementing more sunlight hours in the evening for all twelve months of the calendar. Cotton, whom Trump called “a friend of mine” in the Saturday post, has long argued that making daylight saving time permanent would leave children, farmers and other early risers in the dark for hours on winter mornings.
One of Trump’s key selling points on Saturday: the PGA tour.
“The PGA TOUR, as an example, needs more Daylight in the afternoon in order to finish their Tournaments,” he said, attaching a letter from PGA Tour CEO Brian Rolapp endorsing the bill. ”Likewise, regular Golfers, Tennis Players, Hunters and, perhaps most importantly, Farmers who want more Daylight to play or work.
A Blue Light News call to the cellphone number went to voicemail. A spokesperson for Cotton did not respond to a request for comment. The White House did not immediately respond to a request for comment.
The current version of the bill was introduced in the House in January 2025 by Rep. Vern Buchanan (R-Fla.), with Sen. Rick Scott (R-Fla.) leading the Senate version. The legislation would make daylight saving time permanent across most of the country, ending the twice-yearly clock changes. The legislation has been stalled in the Senate since July.
The president encouraged supporters of the bill, dubbed the “The Sunshine Protection Act,” to call Cotton to “let your Senator know it would be a GREAT Bipartisan WIN for the United States Senate, and for America, itself.”
During the 2016 Republican presidential primary, he publicly gave out the personal cellphone number of then-rival Sen. Lindsey Graham after the South Carolina Republican criticized him. Trump, who came to count on Graham as a reliable Senate ally after he won the presidency, revisited the moment during Graham’s funeral in July, acknowledging that sharing the number was something he “shouldn’t have done.”
Kelsey Brugger contributed to this report.
Sen. Bernie Sanders will hit the road for Troy Jackson in Maine starting Oct. 10, the first time the progressive leader will stump for the candidate this cycle.
The Vermont independent plans to hold three rallies with Jackson, according to an itinerary shared first with Blue Light News: first in Bangor on Oct. 10th followed by Lewiston and Biddeford on Oct. 11.
The Maine swing will kick off Sanders’ travel for the final stretch of the midterms, covering ground throughout October for House and Senate candidates, POLITICO reported.
“Bernie and Troy know that working people built this country and deserve a government that fights for them,” Jackson spokesperson Dan Gottlieb told Blue Light News. “Susan Collins has had nearly 30 years to deliver, and working Mainers are still getting squeezed while she serves the billionaires and corporate interests who bankroll her campaigns. Mainers don’t need another six years of excuses.”
Sanders campaigned ahead of major wins for progressives in the primary season, speaking at more than 60 rallies since last year’s Fight the Oligarchy tour and endorsing more than 90 candidates up and down the ballot.
He’s also opening his substantial $23 million campaign war chest, POLITICO reported, and contributing hundreds of thousands of dollars toMinnesota Lt. Gov. Peggy Flanagan’s Senate campaign and others including Angie Nixon in Florida and Minnesota Attorney General Keith Ellison,
Sanders will return to Maine after initially backing Graham Platner’s campaign for Senate. Allegations reported by POLITICO ultimately led him to call on the Democratic nominee to drop out of the race.
Sanders had not formally endorsed Jackson since he clinched the nomination from Platner, though he previously backed Jackson’s initial run for governor.
House Financial Services Chair French Hill said he has “no concerns” about winning back his Arkansas seat in the upcoming midterm elections, but the six-term House member acknowledged the political headwinds for his party.
“I consider the atmosphere a very tough political environment right now because of President [Donald] Trump’s lack of favorability at the top, and you know people are concerned about, as I say, what it’s like to live under an inflated economy the last four years,” Hill said in an interview.
Hill is in a solidly red district, according to the nonpartisan Cook Political Report, and said he is up against a “weaker candidate this time than I’ve had in past races.” Polling in the district, however, has shown a tighter race. The two polls done this year placed Democratic challenger Chris Jones ahead of Hill by a few percentage points. Any perceived polling victory for Jones is still well within the margin of error, and one of the polls had a Democratic sponsor.
Stephannie Lane Baker, a spokesperson for Jones, said that “of all the Republicans in Congress, the chairman of the Financial Services Committee doesn’t get to dodge responsibility for this economy. He’s in trouble, and he knows it.”
Additionally, Illinois Gov. JB Pritzker’s PAC, Ready for the Fight, committed more than $1 million in television ads through the next five weeks for Jones’ race in Arkansas’s 2nd District, Jordan Abudayyeh, a spokesperson for the PAC confirmed. Overall Democratic spending on advertising for the race was just over $1 million, primarily made up by contributions from the Ready for the Fight PAC, with Republicans spending almost $2.7 million on ad buys, according to AdImpact, an advertising tracking service.
Hill said he has addressed affordability concerns “head on” this Congress.
“My work on housing, my work on the Price Stability Act, my work to try to reduce waste, fraud, and abuse, and drop the federal budget deficit as a percentage of GDP,” Hill said. “All these things can contribute to a more affordable environment for people. So I’ve tried to make that a forefront of my campaign this year.”
Hill was a key architect of the 21st Century ROAD to Housing Act, a bipartisan housing affordability bill that became law in July. The Price Stability Act, which is unlikely to become law this year, would narrow the Federal Reserve’s current dual mandate of pursuing maximum employment and price stability to focus exclusively on containing inflation.
-
Politics2 years agoFormer ‘Squad’ members launching ‘Bowman and Bush’ YouTube show
-
Uncategorized2 years ago
Bob Good to step down as Freedom Caucus chair this week
-
The Josh Fourrier Show2 years agoDOOMSDAY: Trump won, now what?
-
The Dictatorship2 years agoPete Hegseth’s tenure at the Pentagon goes from bad to worse
-
Politics2 years agoFormer Kentucky AG Daniel Cameron launches Senate bid
-
The Dictatorship2 years agoLuigi Mangione acknowledges public support in first official statement since arrest
-
Politics2 years agoBlue Light News’s Editorial Director Ryan Hutchins speaks at Blue Light News’s 2025 Governors Summit
-
The Dictatorship1 year agoMike Johnson sums up the GOP’s arrogant position on military occupation with two words