“I am a gay woman who is moderately pro-choice – I know that there are some people in this room who don’t believe that my marriage should have been legal,” the rightwing impresario Bari Weiss told a Federalist Society gathering in 2023. “And that’s OK. Because we’re all Americans who want lower taxes.”

The assembled conservatives guffawed at hearing the quiet part out loud: in this case, the admission that tax cuts for the rich have been the glue holding the US conservative movement together.

And yet, less than two years after Weiss’s speech, the epoxy seems to be less sticky.

In recent weeks, polls have shown Republican voters becoming far more skeptical of across-the-board tax reduction proposals. Reflecting that shift, GOP lawmakers are now trial-ballooning a proposal to increase some taxes on the wealthy. Some Maga voices are attempting to articulate a Republican-leaning, tax-cut version of Democrats’ traditional redistributionist rhetoric, arguing that higher taxes on millionaires should finance bigger tax cuts for the working class.

All of this has the Washington swamp’s old-guard Republicans in a panic; one longtime anti-tax leader insisted that “there are traitors inside the Trump White House,” and another declared: “This is a potential crisis in the party – it sounds like Bernie Sanders economics.”

So what happened? Why is the anti-tax argument losing its unifying power among Republicans?

As the Lever’s new investigative audio series Tax Revolt details, the answer may lie in that movement’s key revelation a half-century ago.

In the mid-1970s, the Republican party was adrift, demoralized and divided amid both the post-Watergate backlash and the Republican president Gerald Ford’s attempt to raise taxes in pursuit of halting inflation and plugging federal budget holes. A young journalist named Jude Wanniski had an epiphany when at a lunch meeting, he watched the economist Arthur Laffer draw a curve on a napkin to argue to the Ford staffers Dick Cheney and Don Rumsfeld that cutting taxes could raise companies’ revenues.

Two years later, Wanniski penned a grand unifying “Santa Claus Theory”, arguing that Republicans had “continued to play Scrooge, carping against increased spending without ever offering the obvious alternative”: tax reduction.

He concluded: “Republicans, traditionally the party of income growth, should be the Santa Claus of tax reduction,” offering it as a supposed gift to Americans – and understand that “the first rule of successful politics is Never Shoot Santa Claus.”

It was a revelation for a new generation of conservatives seeking to create a sunnier, more optimistic image for the GOP in the wake of Barry Goldwater’s cranky campaign and Richard Nixon’s downfall. Younger, more telegenic Republican leaders such as Representative Jack Kemp passed the essay around to colleagues, urging them to reimagine tax cuts not solely as a means to demonize government, but also as a way........

© The Guardian