Trump Renews Effort To Hike Taxes On Wealthy Americans, Holds Talks With Mike Johnson: Report

The White House is reportedly reviving the push for a tax increase on the wealthiest Americans as part of President Donald Trump‘s forthcoming tax package.

What Happened: The proposal recommends allowing the top marginal income tax rate cut, enacted by Trump in 2017, to lapse for the highest-income Americans. This would result in a tax rate increase from 37% to 39.6% for those earning more than $2.5 million for single filers or $5 million for joint filers. Punchbowl News was the first to share these figures with its community.

On Wednesday, the President made this policy request. The founder of Punchbowl News, Jake Sherman, disclosed that Trump directly asked Speaker Mike Johnson (R-La.) to back this policy. The White House is of the view that this tax increase on the wealthiest will facilitate substantial tax cuts for the middle and working class and safeguard Medicaid.

This proposed tax increase marks a significant departure for House Republican leadership, which had previously rejected the idea. The House Ways and Means Committee is slated to finalize the tax portion of the bill, which the president has described as his “big, beautiful bill ” on Tuesday.

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Why It Matters: This proposed tax hike on the wealthiest Americans has been a contentious issue within the GOP. Earlier it was reported that President Trump’s support for a tax increase on millionaires sparked a fierce debate among Republicans and conservatives.

Speaker Johnson had previously told Fox News, “I'm not in favor of raising the tax rates…”

The President’s inclination towards increasing the marginal tax rate for those earning more than a million dollars per year was met with outrage among traditional conservatives and business circles. However, some of Trump's congressional allies showed a willingness to consider the idea, contingent on Trump's endorsement.

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