Pence undercuts Trump on potential tax hikes in the ‘big, beautiful bill’

Former Vice President Mike Pence is urging House Republicans to stand firm against hiking taxes on the country’s top earners, as sources tell Fox News Digital the White House is floating a millionaire tax hike proposal to offset the cost of eliminating taxes on overtime pay, tipped wages and retirees’ Social Security.

Pence, who launched the conservative policy advocacy group Advancing American Freedom (AAF) in 2021, sent a letter to congressional Republicans advising them to “stand firm against tax hikes.” The letter, addressed to House Ways and Means Committee Chairman Rep. Jason Smith, R-Mo., and Senate Finance Committee Chairman Sen. Mike Crapo, R-Idaho, emphasized the importance of keeping tax cuts in place.

“The American people voted for tax cuts, not tax hikes. Advancing American Freedom calls on Republicans to swiftly renew the across-the-board tax cuts that unleashed prosperity during President Trump’s first term and deliver on the promise to make America prosperous again,” the letter stated.

Pence, in a statement to Fox News Digital, highlighted the success of the Trump-Pence tax cuts in boosting the economy and creating more opportunities for Americans. He emphasized that lower taxes lead to more jobs and economic growth.

Sources familiar with the discussions revealed that White House aides have been quietly proposing a plan to raise the tax rate for individuals earning more than $1 million to 40%. This proposal aims to offset the cost of President Trump’s pledge to cut taxes on overtime pay, tipped wages, and retirees’ Social Security.

While the discussions are preliminary, Pence has urged House Republicans to resist tax increases on the wealthy, emphasizing that Republicans should focus on cutting taxes rather than raising them. He warned that raising the top marginal tax rate would significantly impact small businesses in America.

The former vice president has been critical of Trump’s policies in his second term, particularly regarding tariff uncertainty and the potential negative effects on American families. Pence has advocated for limited government and urged Congress to take back control over tariffs.

Despite their differences, Pence and Trump were seen shaking hands at former President Jimmy Carter’s funeral in December, marking their first public appearance together in nearly four years. Pence, who refrained from endorsing Trump in 2024, dropped out of the race for the White House and has distanced himself from his former boss since the Capitol riot on Jan. 6, 2021.

Pence’s campaign for the presidency failed to gain traction as Trump maintained a lead over other Republican candidates. Pence’s decision to stand up to Trump during the Capitol attacks earned him praise from a small anti-Trump faction within the Republican Party.

The White House did not respond to requests for comment on the proposed millionaire tax hike. Deirdre Heavey is a politics writer for Fox News Digital.