Trump pushes tax hikes for wealthy as ‘big, beautiful bill’ deadline looms

House Republicans are currently strategizing to pass President Donald Trump’s ambitious tax bill by Memorial Day. The bill aims to strike a balance between tax reductions and new revenue in order to gain approval. One of the key proposals in the bill is eliminating taxes on tips, which is a popular move among voters and a promise made by the president during his campaign. However, concerns have been raised by a group of deficit hawks who are worried about how the revenue gap will be covered.

To address these concerns, President Trump has urged House Speaker Mike Johnson to consider raising taxes on the super wealthy. One proposal being considered is to increase the tax rate on individuals earning $2.5 million or more from 37% to 39.6%. While this move could resonate with working-class Americans, it has faced opposition from conservative lawmakers who have pledged against any tax increases in the past.

President Trump took to Truth Social to express his thoughts on the matter, acknowledging the potential backlash from the left if taxes are raised on the wealthy. Despite this, he expressed his willingness to accept a “tiny” tax increase for the rich if it helps lower and middle-income workers. However, he also warned about the political repercussions of such a move, referencing George Bush’s infamous “Read my lips” quote.

Another contentious issue in the bill is the deduction for state and local taxes (SALT), which has yet to be resolved. A group of Republican representatives from New York have threatened to vote against the bill if their concerns about SALT are not addressed. Additionally, there is ongoing debate about health assistance in the bill, with some lawmakers accusing Democrats of trying to create fear among Republicans about cuts to Medicare and Medicaid.

As the House Republicans work towards finalizing the bill, House Budget Committee Chairman Jodey Arrington has emphasized the importance of clarity and specificity in the proposals. Freedom Caucus Chairman Andy Harris echoed this sentiment, highlighting the need to see the final version of the bill before making any decisions.

Overall, the House Republicans are facing a challenging task of balancing tax cuts and revenue generation in President Trump’s tax bill. The next few weeks will be crucial as they work towards passing the bill and fulfilling the president’s promise of a “big, beautiful bill.”