Republicans in Congress are clinging to their conservative economic message and touting tax cuts, even as President Trump veers populist and shifts the focus to international trade.
American Action Network, the political nonprofit aligned with House Speaker Paul Ryan, R-Wis., is launching a $1 million television advertising blitz in 24 battleground districts. The goal of the campaign will be to promote the $1.4 trillion federal tax overhaul passed by the Republican Congress amid unanimous Democratic opposition.
Republicans see the law as crucial to their electoral prospects in a midterm election shaping up as a backlash against Trump; they want voters to make a direct connection between the tax bill and accelerated job and wage growth.
“All across the country, working families are benefiting from the results of pro-growth tax reform, and seeing a $2,000 tax cut,” AAN executive director Corry Bliss said in a statement shared with the Washington Examiner. “These tax cuts, wage increases, bonuses and other employee benefits — a direct result of the Tax Cuts and Jobs Act — are helping working families by providing a much-needed sense of financial security. AAN will continue to tout the benefits of the Tax Cuts and Jobs Act as families and workers across America continue to benefit from meaningful tax reform.”
Trump broke with congressional Republicans and this upbeat pitch and announced stiff tariffs on imported steel and aluminum in a bid to lift the dark cloud over the American economy. The president said the American economy continues to languish, hemorrhaging jobs because other countries are engaging in unfair trade practices with the U.S.
This message has dominated Trump’s Twitter feed in recent days, supplanting the Tax Cuts and Jobs Act as the president’s driving economic message on social media. Trump announced his plan to levy tariffs against all countries, allies and adversaries, late last week; his administration is expected to make the moves official in the next few days.
“We are on the losing side of almost all trade deals. Our friends and enemies have taken advantage of the U.S. for many years. Our Steel and Aluminum industries are dead. Sorry, it’s time for a change! MAKE AMERICA GREAT AGAIN!” Trump tweeted Sunday evening.
In the targeted districts that could determine the House majority this November, the Republicans are betting on tax cuts.
American Action Network is hitting TV airwaves with a spot urging voters to remember the tax bill at the ballot box. It was set to broadcast in four vulnerable California seats; two endangered Florida seats; and two threatened seats each in Michigan, New York and Pennsylvania, plus others.
AAN and its sister organization, the super PAC Congressional Leadership Fund, are investing tens of millions of dollars to improve the image of the tax bill, viewing it as the key to any success Republicans might have in holding the party’s 24-seat House majority.
“My paycheck is bigger every two weeks,” says an individual identified as a “working mom” in one of the ads, which are customized for each district. “And I’m one of the millions of Americans who got a bonus. The extra thousand dollars was a big help. Now my bonus and bigger paycheck are giving my family peace of mind.”
In Congress, Republicans were flabbergasted at his pivot to trade, and concerned about its implications for the economy and their political health. The GOP’s midterm positioning, still precarious, has strengthened somewhat since Trump signed the Tax Cuts and Jobs Act in late December. Economic indicators, and voters’ perceptions of the economy as it impacts them, have been increasingly positive.
Tariffs could spark and international trade war, upping the prices of domestic goods and depressing economic growth, and Republicans are practically begging Trump to reconsider. Much of the pressure is coming from Wisconsin, a state that supported the president in 2016 and is considered quintessential Trump territory.
Gov. Scott Walker, a Republican who is usually complimentary of Trump, asked him to stand down or risk manufacturing jobs in Wisconsin. Sen. Ron Johnson, R-Wis., and Ryan, who represents the 1st Congressional District in the southeastern portion of the state, have issued similar warnings.
“The speaker is hoping the president will consider the unintended consequences of this idea and look at other approaches before moving forward,” Ryan spokesman Doug Andres said.
