White House aides are discussing a proposal within the House GOP to raise the tax rate for people making more than $1 million to 40% in order to offset the cost of eliminating tips on overtime pay, tipped wages, and retirees’ Social Security. This proposal is one of many being considered by congressional Republicans as they work to advance President Donald Trump’s agenda through the budget reconciliation process. While Trump and his White House have not yet taken a position on the matter, his aides and staff on Capitol Hill are considering the idea. House GOP leaders, including Speaker Mike Johnson, have publicly opposed any tax hikes, indicating a divide among Republicans on enacting Trump’s tax agenda.
The budget reconciliation process is seen as a way for Republicans to extend Trump’s 2017 Tax Cuts and Jobs Act and enact newer tax proposals by lowering the Senate’s threshold for passage from 60 votes to 51. This allows them to pass legislation advancing their priorities, provided the measures deal with tax, spending, or the national debt. However, extending Trump’s tax cuts is expected to cost trillions of dollars, and the party must find a way to pay for new policies eliminating taxes on tips, overtime pay, and retirees’ Social Security checks. One possible solution could be raising taxes on the ultra-wealthy, which could create a difficult political situation for Democrats.
The current top income tax rate is around 37% for earnings over $609,351 for a single person or $731,201 for married couples. Raising the rate for millionaires could be a way to fund Trump’s new tax policies. House Freedom Caucus Chairman Andy Harris is considering this possibility, but would prefer to find spending reductions elsewhere in the budget. Other House GOP lawmakers have expressed mixed reactions to the proposal, with some open to supporting it but others hesitant. Despite disagreements within the party, House Republicans continue to discuss different options for funding Trump’s tax agenda.
House Majority Leader Steve Scalise has expressed skepticism towards the proposal to raise taxes for millionaires, cautioning that all ideas are being considered but he does not support this particular initiative. He acknowledges that without action, over 90% of Americans could see a tax increase. Bloomberg News was the first to report on the 40% tax hike proposal within the House GOP. When asked for comment, the White House referred to comments by Press Secretary Karoline Leavitt, who stated that Trump has not made a decision on supporting the proposal. The Speaker of the House, Mike Johnson, has not provided a comment at this time.
In conclusion, House Republicans are exploring various options to fund President Donald Trump’s tax agenda, including raising taxes on people making over $1 million. Trump and his White House have not yet taken a stance on this proposal, but discussions are ongoing within the GOP. Some Republicans are open to the idea of a tax increase for millionaires, while others are more cautious. The budget reconciliation process is seen as a way for the party to advance its priorities, but disagreements within the party highlight the challenges of enacting Trump’s tax policies.
