Overview

• President Trump stated he 'loves the concept' of a millionaire tax to benefit the middle class but fears it could harm Republican election prospects.
• House Speaker Mike Johnson and key GOP leaders firmly oppose any tax increases, citing traditional Republican tax-cutting priorities.
• Republicans have considered either restoring the pre-2017 top tax rate of 39.6% or introducing a new 40% bracket for incomes above $1 million to fund Trump's legislative agenda.
• Trump warned that a millionaire tax could lead to wealthy individuals leaving the country, potentially reducing tax revenues.
• The debate underscores a growing rift within the GOP between traditional tax-cut advocates and populist-nationalist voices pushing for policies targeting income inequality.