NEWT GINGRICH: We Must Stop The Republican Tax Increasers

Republicans passed a blueprint for President Donald Trump’s “big, beautiful bill,” but the challenge is far from over.

Speaker Mike Johnson and other Republicans must remain vigilant against any effort by misguided members to raise tax rates in the final bill. This is historically important and could have huge political consequences.

The truth is, there has always been a pro-tax increase faction within the GOP. The same night President Ronald Reagan’s three-year tax cut passed the House of Representatives two of his top aides met to discuss how to claw back some of the money that would be returned to the American people. Their ideology told them it was the government’s money. To Reagan, it was the American people’s money.

President Reagan represented a revolution in Republican thinking about taxes. He was convinced by Congressman Jack Kemp, Art Laffer, Jude Wanniski, Larry Kudlow, and other supply side economics advocates that lower taxes and reduced regulation would lead to a private sector boom and create an enormous number of jobs.

At the time, most Republicans were fiscal hawks narrowly worried about deficits and cutting spending. Then-Republican Senate Majority Leader Howard Baker called the three-year tax cuts “a river boat gamble.”

Despite the overwhelming success of Reagan’s strategy, the pre-Reagan wing remained willing to raise taxes. In 1988, then-Vice President George H.W. Bush pledged “read my lips, no new taxes” at the Republican National Convention (which earned huge applause). Yet, in 1990, President Bush allowed his senior staff and the Democrats to talk him into breaking his word. Bush’s tax increase was a catastrophic decision. It weakened the economy, split the Republican Party, and directly led to Bush’s defeat in 1992. (RELATED: STEPHEN MOORE: Is There Going To Be Another GOP ‘Read My Lips’ Tax Catastrophe?)

Now, the pro-tax Republicans are back. They argue that a small tax increase could be raised on the rich to offset President Donald Trump’s commitment to eliminate taxes on tips and social security.

Some of the shallower pollsters suggest that raising taxes on successful people would vaccinate Trump from the leftwing charge that he only favors tax cuts for billionaires. This is balderdash. The Democrats are going to say that no matter what.

Grover Norquist heroically developed the “Taxpayer Protection Pledge,” which is a pledge to not raise taxes. He said publicly that any budget reconciliation bill that has a tax increase would be a violation of the long-term Republican commitment to lower taxes and smaller government.

I strongly support passage of Trump’s “big, beautiful bill.” It must be passed and signed into law by June, so the economy can recover by the beginning of 2026. This is key for a strong GOP campaign that grows Republican majorities – in the House and Senate.

Given the current mood of Democrats, the bill will have to be passed with Republican votes. Poison pill tax increases will only lead Republican in-fighting – which the media and Democrats would love to watch – and the bill’s potential failure.

Republicans in the House, Senate, and White House should commit themselves to passing the “big, beautiful bill” with no new taxes.

In addition to making America wealthy again, it would be a real building block toward a permanent Republican majority.

Republicans passed a blueprint for President Donald Trump’s “big, beautiful bill,” but the challenge is far from over.

Speaker Mike Johnson and other Republicans must remain vigilant against any effort by misguided members to raise tax rates in the final bill. This is historically important and could have huge political consequences.

The truth is, there has always been a pro-tax increase faction within the GOP. The same night President Ronald Reagan’s three-year tax cut passed the House of Representatives two of his top aides met to discuss how to claw back some of the money that would be returned to the American people. Their ideology told them it was the government’s money. To Reagan, it was the American people’s money.

President Reagan represented a revolution in Republican thinking about taxes. He was convinced by Congressman Jack Kemp, Art Laffer, Jude Wanniski, Larry Kudlow, and other supply side economics advocates that lower taxes and reduced regulation would lead to a private sector boom and create an enormous number of jobs.

At the time, most Republicans were fiscal hawks narrowly worried about deficits and cutting spending. Then-Republican Senate Majority Leader Howard Baker called the three-year tax cuts “a river boat gamble.”

Despite the overwhelming success of Reagan’s strategy, the pre-Reagan wing remained willing to raise taxes. In 1988, then-Vice President George H.W. Bush pledged “read my lips, no new taxes” at the Republican National Convention (which earned huge applause). Yet, in 1990, President Bush allowed his senior staff and the Democrats to talk him into breaking his word. Bush’s tax increase was a catastrophic decision. It weakened the economy, split the Republican Party, and directly led to Bush’s defeat in 1992. (RELATED: NEWT GINGRICH: Five Principles Republicans Should Never Forget)

Now, the pro-tax Republicans are back. They argue that a small tax increase could be raised on the rich to offset President Donald Trump’s commitment to eliminate taxes on tips and social security.

Some of the shallower pollsters suggest that raising taxes on successful people would vaccinate Trump from the leftwing charge that he only favors tax cuts for billionaires. This is balderdash. The Democrats are going to say that no matter what.

Grover Norquist heroically developed the “Taxpayer Protection Pledge,” which is a pledge to not raise taxes. He said publicly that any budget reconciliation bill that has a tax increase would be a violation of the long-term Republican commitment to lower taxes and smaller government.

I strongly support passage of Trump’s “big, beautiful bill.” It must be passed and signed into law by June, so the economy can recover by the beginning of 2026. This is key for a strong GOP campaign that grows Republican majorities – in the House and Senate.

Given the current mood of Democrats, the bill will have to be passed with Republican votes. Poison pill tax increases will only lead Republican in-fighting – which the media and Democrats would love to watch – and the bill’s potential failure.

Republicans in the House, Senate, and White House should commit themselves to passing the “big, beautiful bill” with no new taxes.

In addition to making America wealthy again, it would be a real building block toward a permanent Republican majority.

Republished with permission from Gingrich360.com.  For more commentary from Newt Gingrich subscribe to the Newt’s World podcast.

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