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The House budget is the Make America Immobile Act. Trump is doing his best to freeze things in place: on behalf of oil companies that want to keep pumping oil, on behalf of automakers that want to keep churning out SUVs.
Credit where due: I am ever impressed by the feral energy of U.S. President Donald Trump and his crew, who are able to do an extraordinary amount of damage every single damned day. And somehow their energetic cruelty seems to drain my own reserves: I want to stay in bed. But we fight as best we can, and so here’s my assessment of one dire day, and more importantly what we still might be able to do about it.
It began, early Thursday morning, with House passage of the budget bill, which somehow managed to get even worse in the wee hours. Among other things, a single sentence was amended in such a way as to potentially kill off most of the rooftop solar industry in the U.S. As Heatmap’s Matthew Zeitlin explains:
While the earlier language from the Ways and Means committee eliminated the 25D tax credit for those who purchased home solar systems after the end of this year (it was originally supposed to run through 2034), the new language says that no credit “shall be allowed under this section for any investment during the taxable year” (emphasis mine) if the entity claiming the tax credit “rents or leases such property to a third party during such taxable year” and “the lessee would qualify for a credit under section 25D with respect to such property if the lessee owned such property.”
That arcane piece of language was enough to knock 37% off the share price of SunRun today, the biggest rooftop installer in the country. And it was only a cherry on the top of this toxic sundae, which would essentially repeal all of the Inflation Reduction Act (IRA). Nuclear power gets a little bit of a reprieve, and of course ethanol (Earth’s dumbest energy source) does great. But it’s a wipeout far greater than anyone expected even a few weeks ago. Here’s how Princeton’s Jesse Jenkins and his team at REPEAT (Rapid Energy Policy Evaluation and Toolkit) sum it up:
In the midst of all this, the Senate—ignoring its parliamentarian—bowed to the wishes of the auto industry and told California (and the 11 states that had followed it) that it couldn’t demand the phaseout of internal combustion vehicles by the middle of the next decade. (This is among other things federalism in reverse).
“Attacking these waivers will devastate our ability to advance the use of electric vehicles in the state,” California Attorney General Rob Bonta said in a press conference after the vote, flanked by California Gov. Gavin Newsom and other officials. “We won’t let it happen, not when we’re facing an air pollution and climate crisis that’s getting worse by the day.”
The 1970 Clean Air Act permits California to receive waivers from the Environmental Protection Agency that enable the state to enact clean air regulations that go further than federal limits.
Oh, and then at day’s end the Department of Homeland Security told Harvard that 27% of its student body couldn’t study there beginning in the fall because they came from foreign countries.
If you add it up, this is all an effort to keep America precisely where it is now. It’s the Make America Immobile Act. Trump is doing his best to freeze things in place: on behalf of oil companies that want to keep pumping oil, on behalf of automakers that want to keep churning out SUVs. That depends, among other things, on shutting down research at universities, because they keep coming up with things that point us in a different direction, be it temperature readings demonstrating climate change or new batteries that enable entirely different technologies. If America lived alone on this planet that would be truly terrible; luckily for everyone else, there are other places (China, and the E.U.) that are not making the same set of stupid decisions. But if this stands it will kill the future for America.
It will also, of course, kill the present. I’m not bothering to talk about the deep cruelty of the Medicaid cuts (and the fact that they will destroy America’s rural hospital system). There’s also the not-small matter of the intense attacks on transgender people the bill contains. And I won’t bother gassing on about the utter grossness of handing over yet more money to the richest among us. (The top 0.1% of earners gain $390,000 a year on average, while Americans making less than $17,000 lose on average about $1,000. This is, among other things, Christianity in reverse).
So, our job is to do what we can to make it… less worse. The U.S. Senate still has to pass its own version of the bill. Given the GOP majority, they’ll pass something very bad. Perhaps, at Trump’s urging, they’ll rush it through in the next 24 hours; more likely it will take a little longer. We need to put as much pressure as we can on that process, in order to take out the most egregious parts of the bill. Here’s what Third Act sent out on Thursday, and here’s the link we want you to use to register your opposition with Senators. It comes from our very able partners at Solar United Neighbors, who have done as much as anyone in America to help people build clean energy. Fill it out so you can get a call script and the numbers to use. Again, here’s the link. If you want a little inspiration, check out Will Wiseman’s video of rural Americans talking about one particular part of the IRA that’s helping change their lives.
I’m not going to bother pretending that this is guaranteed to work. The bad guys here are riding hard and fast, and they’re trying to shock and cow us into submission. But—don’t go easy. If they can summon the feral energy to wreck the country, we can summon the humane energy to try and save it.
"Republicans are out here pretending their tax bill will be the single greatest boost to the economy ever, and JCT says they only get a minuscule boost."
An analysis released Thursday by the nonpartisan Joint Committee on Taxation found that the tax cuts at the center of Republicans' massive reconciliation package would do little to boost economic growth—and would not come anywhere close to paying for themselves.
The JCT report, published hours after Republicans pushed the bill through the House, estimates that the tax cuts would boost the nation's average annual economic growth by 0.03 percentage points over the next decade—hardly the explosion of growth that GOP lawmakers and President Donald Trump have promised.
Economic activity spurred by the tax breaks—which are largely an extension of soon-to-expire provisions of the 2017 Trump-GOP tax cuts—would increase federal revenues by roughly $103 billion between 2025 and 2034, according to JCT.
That would barely put a dent in the overall projected cost of the tax cuts, bringing it down to $3.7 trillion from $3.8 trillion.
"I'm sorry, it is so funny that JCT says the GOP tax provisions pay for only 2.7% of themselves," Bobby Kogan, senior director of federal budget policy at the Center for American Progress, wrote in response to the analysis. "Republicans are out here pretending their tax bill will be the single greatest boost to the economy ever, and JCT says they only get a minuscule boost."
A separate analysis published Thursday by the Institute on Taxation and Economic Policy (ITEP) shows that the benefits of the Republican bill's tax provisions would flow disproportionately to the wealthiest Americans.
"The $121 billion in net tax cuts going to the richest 1% next year would exceed the amount going to the entire bottom 60% of taxpayers (about $90 billion)," said ITEP, whose analysis did not factor in the impact of the legislation's unparalleled cuts to Medicaid and federal nutrition assistance, which would deliver a major blow to the household resources of lower-income Americans.
Amy Hanauer, ITEP's executive director, said Thursday that "it's not surprising that this bill was written behind closed doors and rushed through in the night before Americans had a chance to see what it contains."
"This bill extends enormous tax cuts to those who have the most," said Hanauer. "It will increase inequality, reduce health coverage, and take food from people's tables, all to shower the wealthiest people in this country and foreign investors with tax breaks. In the end, this reconciliation bill redistributes resources up the income scale, widening the already-huge chasm between the rich and the rest of us."
"Millions of Americans will see their healthcare, food, and education costs skyrocket, all so House Republicans can hand themselves and their wealthiest donors a huge tax break."
Just five weeks after pledging that they would not support the Republican Party's budget reconciliation package if it included cuts to Medicaid, six GOP lawmakers ultimately did just that on Thursday morning—and an analysis by government watchdog Accountable.US suggested they voted for the legislation to benefit themselves, despite the suffering it would cause for their constituents.
Along with cutting Medicaid for close to 14 million Americans and slashing nearly $300 billion in food assistance, the bill Republicans voted on in the early morning hours after weeks of deliberation included a tax policy proposal to expand a provision called Section 199A, which was previously introduced during the first Trump administration as part of the GOP's original law providing tax breaks for corporations and the wealthy.
The bill that passed in the House Thursday would raise the percentage of qualifying business income—such as rental income—people can deduct from their taxes from 20% to 23%. The provision is now set to expire at the end of the year.
If it's extended as written in the reconciliation bill, Accountable.US identified six Republican House members who could directly benefit from the expansion of the "pass-through deduction": Reps. Rob Bresnahan of Pennsylvania, Rob Wittman of Virginia, Jen Kiggans of Virginia, Young Kim of California, Juan Ciscomani of Arizona, and Jeff Van Drew of New Jersey.
Those six lawmakers were among the 12 who last month wrote to GOP leaders to say they represent "districts with high rates of constituents who depend on Medicaid" and to "reiterate our strong support for this program that ensures our constituents have reliable healthcare."
"We cannot and will not support a final reconciliation bill that includes any reduction in Medicaid coverage for vulnerable populations," wrote the lawmakers last month. "Cuts to Medicaid also threaten the viability of hospitals, nursing homes, and safety-net providers, nationwide. Many hospitals—particularly in rural and underserved areas—rely heavily on Medicaid funding, with some receiving over half their revenue from the program alone."
"It is the peak of hypocrisy that the loudest and most vocal opponents of Medicaid cuts cowered in a matter of days in favor of a bill that will make the largest cuts to Medicaid in modern history—all to pay for lower taxes for the richest."
With the six Republican members poised to earn thousands more each year from the pass-through income deduction, those concerns appeared to have evaporated on Thursday.
"It is the peak of hypocrisy that the loudest and most vocal opponents of Medicaid cuts cowered in a matter of days in favor of a bill that will make the largest cuts to Medicaid in modern history—all to pay for lower taxes for the richest," said Tony Carrk, executive director of Accountable.US. "Even worse, those very members stand to financially gain from those tax cuts, while their own constituents lose their healthcare. Their votes aren't just a flip-flop; they are a betrayal to hardworking Americans everywhere who will be worse off because of this bill."
Accountable's Cash in Congress project found that for the 2023 tax filing year, the six members of Congress earned a combined $327,000 in pass-through income, according to financial disclosures.
Bresnahan stands to benefit the most from the extension of Section 199A, The American Prospectreported, as he earned at least $137,000 from rental properties. Out of the six lawmakers, he also represents the most Medicaid beneficiaries: 230,000.
Wittman reported $105,000 or more in pass-through rental income, and represents 125,000 people who receive Medicaid. Kiggans reported $50,000 and represents 130,000 people who use the healthcare program for low-income Americans.
All together, reported The American Prospect, the lawmakers represent 971,000 Medicaid beneficiaries who could be affected by a work requirement amendment that would go into effect at the end of 2026 and other provisions.
"Millions of Americans will see their healthcare, food, and education costs skyrocket, all so House Republicans can hand themselves and their wealthiest donors a huge tax break," said Accountable. "The only 'winners' in this bill are the billionaires that paid for it."