President Donald Trump’s comments ended GOP talks of raising the top tax rate from 37% to 39.6% or 40% on incomes over $1 million|Gage Skidmore|CC BY-SA 2.0
President Donald Trump rejected raising income taxes on the wealthy, calling a potential millionaire’s tax “very disruptive.”
His remarks ended weeks of GOP discussions about increasing the top tax rate from 37% to 39.6% or 40% on incomes over $1 million to help fund Trump’s tax cuts, defense, and border spending plans.
Trump warned that such a move could drive millionaires to leave the US, though experts say avoiding federal taxes would require renouncing citizenship, and it still wouldn’t exempt US-sourced income.
The President’s words came a day after former House Speaker Newt Gingrich shared a message from Trump saying Democrats would weaponize the hike against Republicans.
The tax hike idea clashed with long-standing GOP orthodoxy but gained temporary traction as Republicans sought ways to pay for Trump’s agenda.
Despite the populist shift, Trump’s firm stance signals the party’s continued resistance to raising top tax rates.