Amid internal debates within the Republican Party over the size and structure of their proposed tax overhaul, U.S. President Donald Trump expressed a willingness to raise taxes on the wealthiest Americans, signaling a potential shift in the party’s fiscal strategy.
“Republicans should probably not do it, but I’m OK if they do!!!” Trump wrote on his social media platform Friday, referring to a possible tax hike on high-income earners.
Trump’s remarks come as Republican leaders in Congress weigh adjustments to their original tax reform plan. House Speaker Mike Johnson is reportedly considering scaling back the package from its initial $4.5 trillion to around $4 trillion in total tax cuts, according to a Republican aide.
Senate Republican Whip John Thune expressed reservations about the idea. “We don’t want to raise taxes on anybody. I mean, we’re about lowering taxes on Americans,” he said during an appearance on Fox News.
Behind the scenes, Trump has been lobbying for revisions to the plan. According to sources cited by Reuters, the former president privately urged Johnson to support raising the top individual tax rate to 39.6% from 37% for individuals earning $2.5 million or more, and for couples earning at least $5 million. The proposal would reportedly include exemptions for small businesses.
Trump’s team is also advocating for the closure of the carried-interest loophole, a long-standing tax benefit for Wall Street investors.
These discussions have unfolded as Republicans seek ways to offset the cost of their proposed legislation. The goal is to make permanent several provisions from Trump’s 2017 Tax Cuts and Jobs Act (TCJA), which are set to expire. However, party leaders remain divided over how to fund the plan, with proposed spending cuts to programs like Medicaid falling short of the $2 trillion savings target over the next decade.
Representative Andy Harris of Maryland, chair of the House Freedom Caucus, voiced support for restoring the pre-TCJA top tax bracket to help finance the broader Trump agenda.
“Personally, I’ve always believed that if we can’t find spending reductions elsewhere, we should look at restoring the pre TCJA tax bracket on million dollar income,” Harris stated on X (formerly Twitter).
Trump sees increasing taxes on the wealthy as a tradeoff to finance “massive” tax cuts for the middle and working class, and to preserve safety net programs like Medicaid. However, he also warned Republicans of the political risks.
He cautioned that “even a ‘TINY’ tax increase for the ‘RICH'” could be exploited by Democrats, referencing former President George H.W. Bush’s failed 1992 re-election bid after breaking his “no new taxes” pledge.
Trump and congressional Republicans have positioned the tax plan as part of a broader budget proposal, which includes measures to bolster border security, expand military spending, implement energy deregulation, and authorize mass deportations of undocumented immigrants.
