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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.

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.