Right of First Refusal (ROFR) is on hold for now. The Capitol Report has been reporting on a measure that would limit the number of companies that could bid on various energy projects during the initial round of bidding. Opponents say that states that have enacted such provisions have seen significant increases in their energy rates. The amount of money that the energy companies have donated to elected officials in both parties is substantial. There has been no movement on the measure, due to an extraordinary amount of pushback from taxpayer groups but we will continue to monitor the effort.
Both Parties in Disarray
It is perfectly normal for a party to do some “soul searching” after losing a national election. Donald Trump’s victory this past November has sent shock waves throughout the Democratic Party.
Although we must note that Trump’s margin of victory was small in many states, he did win all the swing states and most surprisingly, the popular vote. The Democrats now face many questions within their own party. Was it the message or the messaging? Was it Kamala or was it that Joe Biden didn’t get out of the race soon enough? Was it the border, or the economy? These are typical questions that either party would be talking about after a loss. This time there is visible movement within the party. The Democratic National Committee (DNC) Vice Chair David Hogg (of the Parkland School shooting fame) is mounting an effort to oust “old school” leaders like Senate Minority Leader Chuck Shumer (member of Congress since 1981) and replace them with younger firebrands like Congresswoman AOC (Alexandria Ocasio-Cortez). AOC holds a double-digit lead over Shumer in his race for re-election to the senate. Hogg is facing increasing criticism from members of the DNC and at the same time, gaining support. It will be interesting to see if Hogg can move the party further to the left or whether the moderates can bring the party closer to the center.
The Republicans will Go as the Economy Goes
Many political activists within the Republican Party feel that Donald Trump has turned the party on its head. Trump’s form of populism doesn’t quite fit within the party parameters and going forward without Trump in 2028 has the leaders in the Republican National Committee (RNC) very concerned. NOTE: The Capitol Report does not believe that there is any chance of Trump running again in 2028. All talk of 2028, no matter who is the nominee, needs to be put on hold until the “all important” midterm elections have panned out. Traditionally the party out of power, in this case the Democrats, do very well but we believe that the election in 2026 will be different. As the economy goes, so does Trump and the Republican Party (a position shared by many including the Capitol Report). The issue of the economy is fairly stubborn as a political issue. Families across the country will not be told how well they are or aren’t doing. Everyone knows how much a gallon of gas costs, the price of groceries and whether they are doing better than four years ago, or in this case, two years ago.
Republicans are also Struggling to Find Unity.
Most Republicans understand the “Trump plan” to build a robust economy, but many others do not. Senator Rand Paul has been a vocal critic of the president’s tariff policies and has railed against congresses’ refusal to significantly cut spending in the “Big Beautiful Bill” (BBB) that is currently progressing in both houses. Blue state Republicans want a larger “SALT” deduction included in the bill. The state and local tax deduction (SALT) allows individuals to deduct their state and local taxes from their federal tax burden. Taxpayers in states with higher taxes (New York, California and Hawaii) stand to benefit greatly from the SALT deduction. Medicaid “cuts” are also a hot topic within the Republican Party. The Trump team maintains that the cuts coming from eliminating waste and requiring able-bodied childless adults to work the equivalent of 20 hours a week to receive benefits are just common-sense reforms. Critics of the BBB point out that many of the tax cuts that the bill would make permanent, reduce the tax burden disproportionately for the wealthy. Proponents of the bill point to eliminating taxes on tips and overtime, along with other deductions for middle class wage earners make the tax cuts beneficial to all.
Trump Plans to Grow the US Economy
We have spoken to several of Wisconsin’s congressmen about the spending, the deficit, and the national debt. Also, if one listens to Trump on the economy, it is clear that his plan is to substantially grow the economy, increase revenue and eliminate the deficit. Our conversations with our congressmen confirm that angle. Senator Ron Johnson disagrees with that plan. Johnson wants more cuts up front and frankly; it’s not an unpopular position within the party faithful. While it is not the intention of this particular article to debate every aspect of the bill, we will point out that many of the “DOGE” cuts are included in the bill while the bill increases spending for military, border protections and other projects. It is clear that Trump believes that once we are producing our own steel, making our own cars, and providing incentives through tariffs to bring back our manufacturing base, America will be able to generate enough revenue to eliminate the deficit and reduce the national debt. That of course remains to be seen, and as always, the proof will be in the pudding.
Legislation being Considered in Wisconsin.
Pharmacy Benefit Manager (PBM) reform – Ever since the concept of the “middleman” was introduced into the pharmaceutical industry, drug prices have risen significantly. One of the main (not the only) drivers of drug prices have been the PBM’s. Health and Human Service Secretary Robert Kennedy Jr points out that the two most lucrative businesses these days are the health industry and the war machine. Pharmacy Benefit Managers (PBM’s) falls into the former category. See SB203 on the Wisconsin State Legislative Website.
The Fight over the Interest on the Federal Coronavirus Dollars
According to the non-partisan Legislative Audit Bureau (LAB), Governor Evers and his administration have not turned over the approx. S172 million in earned interest on the $3 billion that the state received in coronavirus money to the general fund. The Republican led legislature points to Wis. Stat. § 20.906(1) requires that “all money paid into the treasury are to be credited to the general purpose revenues of the General Fund unless otherwise specifically provided.” The nonpartisan Legislative Council agrees. The Republicans have fasted-tracked SB280 requiring Evers to follow state statute. See SB280 on the Wisconsin State Legislative Website.
