Trump’s new move is shaking up the GOP.
Conservatives divided as Trump considers small tax hike on ultra-wealthy to protect working families and lower-income Americans
WASHINGTON, D.C. — President Donald Trump is once again breaking the mold—this time by floating the idea of raising taxes on America’s highest earners to help fund tax cuts for middle- and working-class Americans.
The bold proposal—reverting the top income tax rate for individuals earning over $2.5 million from 37% to 39.6%—has sparked intense debate inside the GOP and across conservative circles. While the tax increase isn’t yet official, the discussion is reshaping the 2025 tax reform package and challenging long-held Republican principles.
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🔥 Trump’s Strategy: Boost Relief for the Working Class
According to insiders, President Trump’s suggestion came as House Republicans scramble to finalize a multi-trillion-dollar tax and spending package. The goal? Deliver up to $4.5 trillion in tax cuts while reducing wasteful government spending and protecting key programs like Medicaid and Social Security—issues vital to older, conservative voters.
A source close to the White House said Trump is considering the millionaire tax as a way to “shield everyday Americans from higher taxes while safeguarding vital benefits seniors rely on.”
🛑 Grover Norquist Sounds the Alarm: “This Is a Job Killer”
Conservative tax reform advocate Grover Norquist, founder of Americans for Tax Reform, warned the president directly about the political risks.
“It’s bad for jobs, bad for small businesses, and bad politics,” Norquist said. “President George H.W. Bush broke a similar promise and lost re-election.”
Norquist’s concerns echo fears across the conservative movement: raising taxes—even on the wealthy—could be a slippery slope that threatens economic growth and voter trust.
💬 Trump Fires Back: “This Isn’t 1992”
In a fiery Truth Social post, Trump dismissed the idea that a minor tax increase on millionaires would cost the GOP politically.
“It wasn’t the tax hike that cost Bush the presidency—it was Ross Perot,” Trump said, referencing the independent candidate who siphoned off nearly 20% of the vote in 1992.
Still, Trump acknowledged that Democrats might weaponize any tax increase in campaign ads. “Probably not the best move politically,” he added—though he left the door open.
💡 Conservatives Like Chip Roy See a Path Forward
Not all Republicans are opposed. Rep. Chip Roy (R-TX), a leading fiscal hawk, said the idea could help balance the books and protect conservative priorities.
“If it helps us extend the 2017 tax cuts and avoid cuts to essential programs, it’s worth considering,” Roy said.
The current GOP plan allows for up to $4.5 trillion in tax relief, provided lawmakers identify at least $2 trillion in spending cuts. That’s no small feat—and a minor tax adjustment on top earners could bridge the gap without touching benefits for seniors or veterans.
💵 Trump’s Broader Tax Plan: Eliminate Taxes on Tips and Overtime
President Trump has also called for eliminating taxes on tips and overtime, a move that would deliver major relief to working-class Americans and small business employees—a key Republican voting bloc.
At the same time, some House Republicans are seeking to raise the cap on the state and local tax deduction (SALT), a proposal popular in high-tax blue states but costly for the federal budget.
Balancing these competing demands may require new revenue sources—and that’s why the millionaire tax remains in the discussion.
🧠 Inside the White House: “Trump Gets the Optics”
Trump, according to National Economic Council Director Kevin Hassett, understands both the policy implications and political consequences.
“It’s not high on his priority list,” Hassett said. “But he sees why some Republicans are talking about it. It’s part of the broader negotiation.”
In his own words, Trump said Friday afternoon:
“I would love to do it to help the middle class—but I don’t think Congress will go along with it.”
🧭 What’s Next? GOP Faces Pressure From All Sides
While the House Ways and Means Committee’s current draft does not include the millionaire tax, leaders have left the door open to amending the bill during negotiations. Senate Republicans, including Majority Leader John Thune (R-SD), are also weighing the political consequences.
“We’re all about lowering taxes—not raising them,” Thune said. “But the president isn’t a conventional politician. People elected him to make deals.”
For now, the debate continues—but one thing is clear: President Trump is once again leading the conversation, pushing bold ideas, and focusing the GOP on working Americans, seniors, and economic growth.