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55m ago

Trump Pushes GOP to Raise Taxes on Millionaires in Bid to Extend 2017 Tax Cuts

President Trump advocates a 39.6% tax rate for top earners to fund middle-class relief and Medicaid, deepening Republican divisions over the cost of permanent tax cuts.

U.S. Speaker of the House Mike Johnson (R-LA) speaks alongside President Donald Trump during a National Day of Prayer event in the Rose Garden at the White House on May 1, 2025 in Washington, DC. The National Day of Prayer is a congressionally recognized observance that calls on people of all faiths to participate in a day of prayer and reflection.
U.S. President Donald Trump shakes hands with Speaker of the House Mike Johnson in the East Room at the White House in Washington, U.S., February 5, 2025. REUTERS/Leah Millis/File Photo
U.S. President Donald Trump looks on as he signs executive orders and proclamations in the Oval Office at the White House, in Washington, D.C., U.S., May 5, 2025. REUTERS/Leah Millis/File Photo
Mike Johnson and Donald Trump in the Rose Garden of the White House on May 1, 2025.

Overview

  • President Trump has urged House Speaker Mike Johnson to raise the top income tax rate to 39.6% for individuals earning over $2.5 million annually, as part of his proposed 'big, beautiful bill.'
  • The push for a millionaire tax has intensified GOP infighting, with fiscal hawks opposing tax hikes and moderates seeking to protect Medicaid and middle-class benefits.
  • Republicans are racing to finalize a reconciliation package, aiming to extend the 2017 Tax Cuts and Jobs Act permanently before its scheduled expiration at the end of 2025.
  • Hardline Republicans demand $2 trillion in spending cuts to offset the multi-trillion-dollar cost of the proposed tax package, while moderates resist deep entitlement reductions.
  • The proposed tax increase on the wealthy faces resistance from traditional conservatives, who argue it could harm job creators and small businesses.