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yesterday

Trump's Tax Hike Proposal for Wealthiest Faces GOP Resistance

The president's suggestion to revert the top tax rate to 39.6% for ultra-high earners to fund middle-class tax cuts and Medicaid faces strong Republican opposition and uncertain legislative prospects.

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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Overview

  • President Trump proposed raising the top marginal tax rate from 37% to 39.6% for individuals earning over $2.5 million and couples earning over $5 million annually.
  • The suggested tax hike aims to fund middle- and working-class tax cuts and preserve Medicaid without cutting entitlement programs.
  • Trump posted on Truth Social expressing mixed views, cautioning Republicans about potential political risks but stating he would be 'OK' if they proceeded with the tax increase.
  • House and Senate GOP leadership, along with conservative advocacy groups, have expressed strong opposition, citing party orthodoxy and insufficient votes to pass the measure.
  • The tax proposal remains under consideration as part of the broader GOP reconciliation bill, with its fate uncertain as House committees prepare to finalize the package by Memorial Day.