Overview

• White House aides are considering a proposal to create a 40% tax bracket for individuals earning over $1 million annually, though discussions remain preliminary.
• President Trump has yet to decide on supporting either the millionaire tax hike or a corporate tax increase to fund his proposed tax reforms.
• House Speaker Mike Johnson and other GOP leaders have publicly opposed raising taxes on high-income earners, reflecting significant internal divisions within the party.
• The proposed tax reforms also include eliminating taxes on tips, overtime pay, and retirees' Social Security, which could add trillions to the federal deficit if not offset.
• The Tax Foundation estimates that extending Trump-era tax cuts and implementing new proposals could cost between $1.5 and $5.3 trillion over the next decade.