Tag: Supply Side

Contributor Post Created with Sketch. Are Supply-Siders Losing Their Grip on the Trump GOP?

 

Trump adviser Steve Bannon is supposedly pushing for higher taxes on the rich to pay for middle/working-class tax cuts. As Axios reporter Jonathan Swan reports: “Bannon has told colleagues he wants the top income tax bracket to ‘have a 4 in front of it.’”

Even if the Trump White House proposed raising the top rate just a smidgen to 40% from the current 39.6%, it would be a pretty big deal in a modern GOP built around the “supply-side,” tax-cutting doctrine. (And remember, what’s really key for supply-siders is lowering that top marginal tax rate.) Many conservative Republicans, such as Paul Ryan, deeply believe lower rates are the maximum driver for faster economic growth. The Bannon plan would also be directly opposite from the most recent iteration of the Trump tax plan, which proposes 35% top rate.