Trump Pushing for New Taxes on the Wealthy

Trump Urges Tax Increase for the Wealthy

President Donald Trump reportedly pushed Republican Speaker of the House Mike Johnson to create a new tax bracket designed to raise taxes on the wealthiest Americans. 

According to Punchbowl's Jake Sherman, Trump made the request during a phone call with Johnson on Wednesday, May 7, urging the Speaker to not only raise the top tax rate but also to close the carried interest loophole. 

The proposal has added significant pressure to ongoing discussions about tax policy within the Republican Party.

Here's what's happening. 

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Details of the Proposed Tax Plan

Jake Sherman revealed additional details about the proposed plan, which would establish a new tax bracket targeting individuals earning more than $2.5 million or $5 million for joint filers, raising their tax rate to 39.6 percent. 

This suggestion is in line with previous reports indicating that Donald Trump's administration has considered increasing taxes on the highest earners in the country, marking a shift from his previous stance on tax cuts for the wealthy.

Trump's Changing Stance on Tax Increases

In recent months, there have been multiple reports that President Donald Trump is open to raising taxes on the rich. 

Semafor's Burgess Everett reported in April that Trump told GOP Senators he was "fine with" the idea of taxing high earners more. This was further solidified by Trump's own remarks in the Oval Office in late April when a reporter asked him if he would support a millionaire tax. Trump responded cautiously, stating, "I think it would be disruptive because a lot of the millionaires would leave the country." 

He expressed concerns that high taxes would prompt wealthy individuals to leave not only states but entire countries, causing a loss of revenue.

Reactions and Discussions

According to Burgess Everett's report, the White House has been contemplating the idea of allowing tax rates for the wealthiest Americans to rise in exchange for tax cuts on tips, in a move aimed at fulfilling some of Donald Trump's 2024 campaign promises.

Axios further reported that some White House officials see this potential tax increase as a way to give the administration more flexibility on other priorities while counteracting criticism from Democrats who have targeted Trump's 2017 tax cuts for the wealthy. 

However, the publication also noted that these discussions remain in the early stages, and nothing has been finalized.

White House Concern

The potential pivot on tax policy has caused concern within the White House about the political optics of raising taxes on the rich. 

One official told Axios, "If we renew tax cuts for the rich paid for by throwing people off Medicaid, we're gonna get f****** slaughtered." 

These internal concerns highlight the delicate balancing act the administration faces in maintaining support for tax cuts while addressing criticism over cuts to services that benefit lower-income Americans.