Key Points Summary: Trump to tax the rich
- Trump suggested raising taxes on the wealthy, then walked it back
- Proposed higher rate on $2.5M+ single earners, $5M+ for couples
- Warned GOP about backlash, citing โRead my lipsโ Bush-era fallout
- Said heโd โgraciously acceptโ a hike but blamed Radical Left for weaponizing it
- Wants to expire 37% top rate and revert to 39.6% or 40%
- Private talks with Speaker Johnson revealed Trumpโs continued push
- GOP divided as Memorial Day deadline for tax bill looms
Trump to Tax the Rich? Not So Fast
President Donald Trump shocked Republicans and donors alike this week by floating the idea of raising taxes on the rich. But by Friday, he was already backpedaling.
The presidentโs latest flip-flop came via his favorite platformโTruth Socialโwhere he posted early Friday that even a small tax hike could trigger a political meltdown.
Trump referenced the infamous โRead my lips: No new taxesโ line that haunted George H.W. Bushโs presidency, warning Republicans of a potential replay.
Millionaire Tax Floated, Then Softened
Earlier in the week, Trump reportedly told Speaker Mike Johnson he favored a higher top tax rate for individuals earning $2.5 million or more.
His suggested hike would revert the 37% top tax bracketโset under his 2017 tax lawโback to 39.6%, or possibly even 40%. That bracket currently affects earners above $600,000.
For couples filing jointly, Trump pitched a new threshold of $5 million.
Trump Posts Mixed Message Online
Despite signaling approval in private, Trump publicly hedged on Friday.
โThe problem with even a โTINYโ tax increase for the RICHโฆ is that the Radical Left Democrat Lunatics would go around screaming, โRead my lips,โโ Trump wrote.
โIn any event, Republicans should probably not do it, but Iโm OK if they do!!!โ he added, punctuating the post with his signature ambiguity.
GOP Split as Memorial Day Vote Nears
Trumpโs latest comment comes as Republicans scramble to finish their tax and spending package ahead of Memorial Day.
House and Senate Republicans remain sharply divided over the proposal, especially with Trumpโs shifting stance.
Anti-tax leaders like Newt Gingrich and Grover Norquist have already mobilized opposition. Gingrich, who famously advised Bush against raising taxes, continues to warn that any hikeโeven for millionairesโcould fracture the party.
Trump Privately Still Wants the Hike
Despite his public wobble, insiders say Trump has repeatedly pushed the idea in closed-door meetings.
According to one source familiar with the talks, Trump views the hike as a way to neutralize Democratic attacks that the tax bill favors billionaires like Elon Musk.
By floating the rate increase, Trump hopes to defend the plan as โbalancedโโeven if Republicans reject it in the final version.
Tax History Looms Large Over Debate
The president is also keenly aware of political history.
In 1988, George H.W. Bush pledged not to raise taxes. But once in office, he did just that. By 1992, the broken promise haunted his reelection campaign.
Trump, citing that example, warned Republicans not to repeat the mistakeโbut still left the door open.
He also posted that independent candidate Ross Perot was the real reason Bush lostโdeflecting some blame from the tax issue.
Senate Republicans Watch and Wait
Sen. Mike Crapo, chairman of the Senate Finance Committee, admitted this week that Trumpโs position complicates the GOP strategy.
โIโm not excited about the proposal,โ Crapo said on the Hugh Hewitt show. โButโฆ if the President weighs in in favor of it, thatโs going to be a big factor.โ
Lawmakers are bracing for a heated battle when the bill reaches the House floor.
Trump to Tax the Rich? Or Just Teasing?
With public hearings expected next week, all eyes are on the final draft of Trumpโs โbig, beautiful bill.โ
Whether or not it includes a millionaire tax remains unclear. But one thing is certain: Trump is testing the watersโand watching the waves.
The president may be signaling to blue-collar voters that heโs not afraid to hit the rich. Or he may just be playing politics as usual.
Either way, the clock is tickingโand the tax fight is far from over.