Trump quietly pushing Mike Johnson on raising taxes for wealthy
President Donald Trump is considering a small tax increase for wealthy Americans to help pay for his priorities to boost the middle and working classes. According to a source familiar with Trump’s thinking, the president is contemplating allowing the rate on individuals making $2.5 million or more to increase by 2.6%, from 37% to 39.6%. Trump discussed this idea with Speaker Mike Johnson, R-La., in a phone call on Wednesday, as reported by Fox News Digital.
This potential tax increase comes as Republicans are working on a significant piece of legislation that includes Trump’s priorities on taxes, border security, immigration, energy, defense, and the national debt. The bill, dubbed as Trump’s “big, beautiful bill,” is projected to add trillions of dollars to the country’s deficit over the next decade. Fiscal hawks are exploring ways to offset this by pairing the new priorities with deep spending cuts elsewhere.
The tax portion of the bill is expected to be the most costly, with Republicans aiming to extend the 2017 Tax Cuts and Jobs Act (TCJA) and fund newer Trump priorities such as eliminating taxes on tips, overtime wages, and retirees’ Social Security. The TCJA had previously lowered taxes for the highest bracket from 39.6% to 37%, but this reduction is set to expire in 2025. Trump is looking to restore the top bracket for individuals making significantly more money than the current threshold of $609,350 for single income earners.
The proposed tax increase on the wealthy is intended to help finance Trump’s “massive” tax cuts for the middle and working classes, as well as safeguard Medicaid coverage for millions of Americans. While discussions are ongoing within the Republican Party regarding this proposal, details are expected to emerge in the coming days. The Ways & Means Committee, the House’s tax-writing panel, is set to meet to advance this portion of Trump’s bill.
The idea of raising taxes on the wealthiest Americans has sparked a division within the Republican Party. Mainstream conservatives argue against raising rates on job creators, while populist and moderate Republicans see it as a way to fund Trump’s initiatives benefiting the middle and working classes. Former Vice President Mike Pence and his allies are against raising taxes on the wealthy, citing concerns about impacting job creators.
Some Republicans believe that the idea could be popular, with Rep. Marlin Stutzman, R-Ind., expressing openness to the proposal if it helps reduce the national debt. The debate on taxing the wealthy is ongoing, and the White House and Speaker Johnson’s office have been contacted for comment on the matter.
In conclusion, President Trump’s consideration of a small tax increase for wealthy Americans to support his priorities for the middle and working classes is a topic of contention within the Republican Party. As discussions continue, the potential implications of this proposal on the economy and government spending remain to be seen. Elizabeth Elkind, a politics reporter for Fox News Digital, is closely monitoring developments related to this issue.
