Trump Reportedly Considers Raising Taxes On Ultra-Wealthy, Striking Rare Common Ground With Ideological Rivals Bill Gates, Bernie Sanders

The Trump administration is reportedly contemplating a tax increase for the wealthiest Americans. The move is seen as a strategic approach to fund other policy priorities.

What Happened: White House officials are in talks about the potential of raising the income tax rate for the highest earners, as reported by Axios. This could be a trade-off for tax cuts on tips, creating room for other priorities and countering criticisms from Democrats who are looking to extend President Donald Trump‘s 2017 tax cuts.

“If we renew tax cuts for the rich paid for by throwing people off Medicaid, we’re gonna get f–king slaughtered,” the White House official told Axios.

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Currently, the top income tax rate is 37%, applying to income over $609,351 for individuals and $731,201 for married couples. If the 2017 tax law expires, the rate will increase to 39.6%, with a lower income threshold for the top bracket.

While only about 1% of taxpayers fall into the top bracket, they contribute a significant portion of income taxes. The proposed changes could lead to increased revenue, potentially helping to deliver some of Trump’s populist promises, such as removing taxes on tips.

Why It Matters: These discussions are preliminary and no decisions have been made. Despite potential opposition from Republicans who argue that low taxes stimulate economic growth, polls indicate that most Americans, including a significant number of Republicans, are in favor of increasing taxes on wealthier individuals.

Microsoft co-founder Bill Gates has been a vocal advocate for increased taxation of the super-wealthy, arguing that it’s a moral duty for individuals, nations, and corporations with substantial resources to contribute more. Abigail Disney, a descendant of the Disney family dynasty; acclaimed actor Brian Cox; Rockefeller family’s Valerie Rockefeller, as well as Sen. Bernie Sanders (I-VT), all share the same views as Gates.

Should the Trump administration’s tax hike for the wealthy come into effect, it could mark a significant shift in U.S. tax policy, potentially fulfilling some of Trump’s populist promises and addressing growing concerns about income inequality.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.