Overview

• President Trump publicly dismissed the idea of a millionaire tax, arguing it would drive wealthy individuals out of the country and harm the economy.
• The proposal, which included creating new tax brackets for incomes above $1 million, had been supported by some of Trump's advisers but faced widespread opposition from GOP lawmakers and traditional conservatives.
• Revenue estimates suggested such a tax could raise $400 billion over a decade, potentially offsetting the cost of extending the 2017 tax cuts set to expire at the end of 2025.
• Key Republican figures, including Speaker Mike Johnson and Senator Ted Cruz, strongly opposed the tax hike, warning it would break party promises and risk electoral backlash.
• Trump's rejection underscores the ideological divide within the GOP between a populist faction open to taxing the wealthy and traditional conservatives adhering to low-tax orthodoxy.