WASHINGTON — President Donald Trump has recently been contemplating the idea of imposing higher tax rates for wealthy millionaires as Republicans work on formulating a significant bill in Congress. However, early Friday, the President seemed to retreat from this notion, albeit not entirely.
Trump took to social media to express concerns that raising taxes, even on the rich, might ignite political consequences, reminiscent of former President George H.W. Bush’s famous “Read my lips: No new taxes” promise, which played a part in his electoral defeat. This comes just days after Trump suggested imposing higher taxes on single filers earning $2.5 million and above.
Nevertheless, Trump didn’t explicitly dissuade GOP lawmakers from considering this option, as they are swiftly working to wrap up an extensive tax cuts and spending reductions package by this weekend. “The issue with even a ‘TINY’ tax rise for the WEALTHY, is that the Radical Left Democrat Lunatics would be screaming ‘Read my lips,’” Trump penned on Friday. Further adding, “Perhaps Republicans shouldn’t do it, but I’m cool if they do!!!”
As Republicans strive to bring Trump’s “big, beautiful bill” to public hearings in the coming week, and aim for a vote in the House by Memorial Day, internal divisions persist in the party. The President’s inconsistent stance on millionaires’ taxes adds a layer of complexity.
For months now, Trump has intermittently proposed higher taxation for millionaires and reiterated this idea in private conversations this week. During discussions with Speaker Mike Johnson, Trump indicated his desire to see a higher tax rate on the wealthy incorporated into the new Congressional bill, according to an insider who spoke on condition of anonymity.
The President views these potential tax increases as a means to counter Democrat claims that the GOP tax plan solely favors the wealthy, including renowned figures like Elon Musk. Under Trump’s 2017 tax legislation, the highest rate currently stands at 37% for incomes over $600,000 for individual filers, and is set to expire by the end of the year. Trump is open to this rate reverting to the pre-existing 39.6% or even increasing to 40%.
Most recently, Trump suggested implementing the highest tax tier for incomes exceeding $2.5 million for individuals and $5 million for couples. This has sparked intense debate among anti-tax activists, guided by prominent figures such as former House Speaker Newt Gingrich and Grover Norquist at Americans for Tax Reform, who are fervently preventing any tax increases.
It appears that on Friday, Trump heeded cautions from Gingrich, who recalled Bush’s pledge during the 1988 campaign not to raise taxes, only to face backlash in the subsequent 1992 campaign for breaking that promise. While Trump once acknowledged Gingrich’s point, he later attributed Bush’s defeat to independent candidate Ross Perot’s influence.
As discussions unfold both publicly and privately, Trump’s populist political instincts continue to stir tensions within the GOP. “I’m not enthusiastic about the proposal, but I must admit there are several members in both the House and Senate who favor it,” noted Sen. Mike Crapo, chairman of the Senate Finance Committee, earlier this week. “And if the President supports it, that will significantly impact our considerations.”