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5d ago

Trump Administration Considers Tax Hike on Millionaires in GOP Budget Talks

Proposal to raise taxes on top earners sparks internal Republican divide as leaders weigh funding strategies for extending 2017 tax cuts.

Rep. Jodey Arrington holds a copy of the Ray Dalio book How Countries Go Broke outside the Capitol Hill Club after a meeting of the House Republican Conference on Tuesday, March 25, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
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Steve Bannon speaks at the Conservative Political Action Conference, CPAC, at the Gaylord National Resort & Convention Center, Thursday, Feb. 20, 2025, in Oxon Hill, Md.
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Overview

  • President Trump's team is exploring a potential tax increase on Americans earning over $1 million annually as part of the 2025 GOP budget reconciliation package.
  • Vice President JD Vance, Budget Director Russell Vought, and Treasury Secretary Scott Bessent have expressed openness to the proposal, while traditional conservatives strongly oppose it.
  • Steve Bannon is advocating for the tax hike, arguing it could neutralize Democratic criticisms of the GOP as favoring the wealthy and align with the party's populist shift.
  • The proposal faces resistance from key Republican figures, including Newt Gingrich, Steve Moore, and House Speaker Mike Johnson, as well as skepticism about its viability in Congress.
  • Reverting the top tax rate to 39.6% could raise an estimated $400 billion over a decade, but critics argue it may not address broader economic inequality or secure enough support to pass.