Donald Trump was already playing with economic fire with his tariff plan, something that is all but certain to stoke some degree of inflation, and slow the economy at least in the short term.
So why would he threaten to throw gasoline on the blaze over his weird flirtation with a millionaire’s tax, something that will divide the slim GOP majorities in the House and Senate, and imperil his big beautiful budget that includes much-needed tax-cut extensions to counter the economic drag of his tariff plan?
It’s a question I keep hearing from my GOP donor sources in the aftermath of some Trump weirdness in recent days, including pushing House Speaker Mike Johnson to include something in his budget increasing the top rate to 39.6% from 37% on individuals earning $2.5 million and above.
The culprits of this machination, they say, are the people in the MAGA wing of the party.
Those include the Wall Streeter-turned-populist Commerce Secretary Howard Lutnick, trade hawk Peter Navarro and even JD Vance, the VP who was once a Silicon Valley financier but has remade himself into a champion of the working man.
These are the people who are said to be hawks on trade that upended the markets and signaled economic gloom before cooler heads like Treasury Secretary Scott Bessent started to cut deals.
But don’t blame the so-called messengers on trade or taxes.
If you hate this stuff, remember it’s Trump who gives them their marching orders.
As a person close to Trump told me: “To pay for middle- and working-class tax cuts, this is reasonable populism given it only affects individuals making $2.5 million-plus.”
I know it’s hard to feel sorry for these GOP donor fat cats, but truth be told, they’re not complaining about their own personal finances.
Yes, they make a lot of money and can afford one less nanny.