Trump Pivots to Tax Cuts to Combat Voters’ Economic Anxiety

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(Bloomberg) — President Donald Trump is pivoting his attention to passing the cornerstone of his legislative agenda, pressuring Congress to quickly approve a massive tax bill that Republicans believe will seal their political fortunes in the midterm elections.

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Trump has spent recent days focused on foreign affairs — the Iranian conflict, the Group of 7 in Canada and his most recent trip to a NATO summit in the Netherlands. Now, he’s shifting to a domestic matter: strong-arming fractious Republican lawmakers to cut a deal on a multi-trillion dollar tax bill by an ambitious July 4 deadline.

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The president’s aides are acutely aware how much of his economic agenda hinges upon the successful package of the tax bill. They say the legislation will soothe household economic worry and spur businesses, reticent to spend amid rising tariffs, to invest in new equipment and facilities.

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Amid the president’s frustrations with the Federal Reserve not cutting interest rates fast enough, the legislation presents the best political opportunity for Trump to demonstrate he’s focused on the economy, his allies say. The legislation would stave off a tax increase slated to hit at the end of the year absent congressional action. It also includes new levy reductions he popularized on the campaign trail, including tax breaks on tips, overtime pay and for car buyers and older people.

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The Trump administration is planning to showcase the legislation at a White House event Thursday afternoon that will feature middle class workers excited about the pending tax cuts — truck drivers, firefighters, hospitality workers and ranchers, according to an official.

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Democrats are launching their own messaging campaign, casting Trump’s “One Big Beautiful Bill” as a giveaway to the rich and corporations that slashes Medicaid benefits to offset tax cuts. 

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Democrats are so far winning the messaging war, with 49% of Americans opposing the measures, compared to 29% supporting it, according to recent polling from the Pew Research Center. Some 21% still remain unsure.  

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Priority Business

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Trump is harping on Republicans to quickly move the legislation and to not get mired in disputes that have divided the party: cuts to Medicaid health-care benefits, reductions to green energy tax credits and an increase to the state and local tax deduction.

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Top officials — including Treasury Secretary Scott Bessent, White House Chief of Staff Susie Wiles, Press Secretary Karoline Leavitt and Office of Management and Budget Director Russ Vought —  have made pilgrimages to the Senate in recent days, underscoring the president’s desire for urgency.

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This full-court-press effort includes the president serving as his own legislative affairs director. One White House official said he will continue to meet with senators in the latter half of the week and make calls, too, to keep up the momentum and address any concerns. 

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“It is realistic to get it passed by July 4,” said Marc Short, who served as the White House legislative affairs director during Trump’s first term. “There are not going to be many Republicans, who will allow for a $4 trillion tax increase and not allow for border funding.”