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yesterday

Trump Signals Mixed Support for Raising Taxes on Wealthy in GOP Budget Talks

As Republicans finalize a sweeping tax and spending bill, Trump suggests a potential millionaire tax while warning of political risks.

WASHINGTON, DC - MAY 05: U.S. President Donald Trump takes a question from a reporter in the Oval Office at the White House on May 05, 2025 in Washington, DC. Trump signed new proclamations and executive orders, including one that ends federal funding for so-called "gain-of-function" studies, which explores the use of microorganisms to alter biological functions in the aid of gene products. (Photo by Anna Moneymaker/Getty Images)
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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.

Overview

  • President Trump reportedly urged Speaker Mike Johnson to consider raising the top income tax rate for individuals earning over $2.5 million annually from 37% to 39.6%.
  • In a Truth Social post on May 9, Trump expressed reservations about the tax hike, stating Republicans 'should probably not' pursue it but that he would 'graciously accept' it if they do.
  • The proposed tax increase is framed as a way to fund middle-class tax cuts and protect Medicaid, aligning with Trump’s broader legislative priorities.
  • Republican leaders remain divided, with fiscal conservatives opposing the tax hike and moderates advocating for measures to balance the budget without cutting Medicaid or other safety net programs.
  • The GOP faces a tight timeline to pass the bill under reconciliation rules, which allow for a simple majority vote in the Senate, as key committee markups are scheduled for next week.