Topline
President Donald Trump voiced skepticism Wednesday to an idea being floated among some Republicans that would create a higher tax rate for millionaires, claiming such an increase would be “disruptive.”
President Donald Trump speaks with reporters as he signs executive orders relating to education in … More
Key Facts
Trump told reporters in an Oval Office appearance an increased tax rate on millionaires would “be very disruptive because the millionaires would leave the country.”
Trump claimed other countries that he did not specify have raised taxes on millionaires and “lost a lot of people,” adding, “They lose their wealthy people. That will be bad because the wealthy people pay the tax.”
House Speaker Mike Johnson, R-La., told Fox News he was not supportive of a tax rate increase for millionaires “because our party is the group that stands against that traditionally,” noting “There were lots of ideas thrown out on the table” as Republicans built an upcoming bill that looks to establish Trump’s agenda for domestic policies.
The proposal that was reportedly being considered would have created a 40% tax rate for those earning $1 million or more per year, according to Bloomberg, which cited unnamed people familiar with the matter (the highest-earning taxpayers currently have a tax rate of 37%, which applies to income above $609,351 a year).
Trump and Johnson’s comments come after Vice President JD Vance and budget director Russell Vought were reportedly open to the idea of raising taxes on Americans making over $1 million a year, according to The Washington Post, while longtime Trump ally Steve Bannon openly embraced the idea, calling it “a no-brainer.”
Treasury Secretary Scott Bessent has expressed openness to the idea of raising taxes on those earning over $5 million per year, the Post reported.
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Key Background
Trump, who was reportedly open to the idea of an increased millionaire tax rate earlier this month, has largely strayed away from raising taxes for the wealthy as Republicans look to extend their 2017 tax law set to expire this year. If the GOP lets the top tax rate revert to 39.6%, about $400 billion could be raised over the next decade, according to the Post, which cited Kyle Pomerleau, senior fellow at the American Enterprise Institute, a center-right think tank.
Further Reading
Trump’s inner circle weighs push for higher taxes on millionaires (The Washington Post)
Millionaire Tax Hike Gains Steam as Trump Signals Openness (Bloomberg)
