President Donald Trump instructed congressional Republicans to raise taxes on the wealthiest Americans as part of his economic agenda, creating friction within his party and complicating their strategy to extend expiring tax cuts.
President Donald Trump has upended the USA political map by directing congressional Republicans to increase taxes on the country’s richest earners, creating immediate tension within his party. During recent conversations with House Speaker Mike Johnson (R-Louisiana), Trump insisted that the upcoming tax bill should raise rates on high-income Americans, according to sources familiar with the discussions. The surprising position has scrambled Republican legislative priorities as they work to extend the expiring provisions of Trump’s 2017 Tax Cuts and Jobs Act.
Treasury Secretary Scott Bessent has explored several options to implement the president’s directive, including allowing the top tax bracket to revert to Obama-era levels or creating an entirely new tax bracket for those earning more than $5 million annually. USA Today reporters noted that the current top tax rate of 37 percent applies to earnings above $626,350 for individuals or $751,600 for married couples filing jointly. Trump is also targeting tax loopholes used by investment fund managers and pursuing higher tax bills for major stadium owners, according to White House insiders.
The tax proposal has revealed deep divisions on the USA political spectrum among Republicans. Sen. Josh Hawley (R-Missouri) acknowledged support for raising taxes on the wealthiest Americans but estimated that “zero, probably” other Republican senators agree with him. “Maybe one or two,” he added. Congressional leaders have been preparing legislation to extend Trump’s 2017 tax cuts while incorporating his campaign promises to end taxes on tips, overtime wages, and Social Security benefits. However, these priorities carry a hefty price tag of nearly $12 trillion over ten years, according to the nonpartisan Committee for a Responsible Federal Budget, creating tension between Trump loyalists and fiscal hawks across the USA map.
Republicans face difficult choices as they attempt to match tax cuts with spending reductions. House GOP leaders have recently ruled out certain cuts to safety net programs, with Speaker Johnson confirming the House would not reduce state Medicaid funding, while House Agriculture Committee Chairman Glenn Thompson stated that food assistance programs would be protected. These decisions further complicate the path toward Trump’s tax agenda. Sen. Bernie Moreno (R-Ohio) expressed opposition to the president’s approach last week, stating, “We don’t have a revenue problem in this country. We have an expense problem.” The proposal ironically mirrors what President Biden and Vice President Harris campaigned on during the 2024 election, suggesting higher taxes for those earning more than $400,000 annually.
(CP) WASHINGTON – Reported by Alexander Reed.