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5d ago

Trump Allies Weigh Tax Hikes on Millionaires as GOP Faces Internal Rift

The White House is exploring tax increases for high earners to fund middle-class relief, but traditional conservatives strongly oppose the move, citing political and economic risks.

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.

Overview

  • Trump's inner circle, including JD Vance and Russell Vought, is considering raising taxes on Americans earning over $1 million to support a partisan budget reconciliation package.
  • Steve Bannon is publicly advocating for new tax brackets targeting millionaires, claiming it would bolster the GOP's working-class appeal and counter Democratic criticisms.
  • Traditional conservatives, including Mike Johnson, Newt Gingrich, and Ted Cruz, oppose the proposal, warning it could harm the GOP's tax-cutting identity and political prospects.
  • Proposed revenue from the tax hikes would fund middle-class relief measures, including eliminating taxes on tips and overtime and raising the SALT deduction cap.
  • While roughly 50 House Republicans and key committee chairs are reportedly open to the idea, its passage in Congress remains uncertain due to strong resistance within the GOP.