Trump pushes for higher taxes on the wealthy – media
The president's proposal reportedly includes the establishment of a new tax bracket set at 39.6% for individuals earning $2.
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The proposal reportedly calls for creating a new 39.6% tax bracket for those earning $2.5 million or more.
U.S. President Donald Trump has suggested increasing tax rates for the nation’s wealthiest individuals, according to various media reports that cite sources close to the discussions. This measure is intended to offset other tax cuts included in Trump's economic package.
Lawmakers are currently focusing on passing a comprehensive legislative package that is projected to yield $1.5 trillion in savings over the next decade. The bill seeks to further Trump’s policies related to taxation, defense, energy, immigration, and border security, alongside increasing the debt ceiling.
Last month, the president dismissed a proposal to raise taxes on rich Americans, contending that it could be “disruptive” and might push millionaires to leave the U.S.
The new proposal emerges during talks about limiting the overall cost of the bill, for which lawmakers are exploring funding options, potentially through cuts to entitlement programs such as Medicaid health coverage for lower-income Americans.
According to the New York Times, the revised proposal calls for instituting a new 39.6% tax bracket for individuals with annual earnings of at least $2.5 million or couples earning $5 million per year. This information was shared by sources familiar with Trump's request to House Speaker Mike Johnson.
Bloomberg reported, citing an unnamed source, that the president has also reiterated his desire to eliminate the carried interest tax break utilized by venture capitalists and private equity fund managers.
Other potential tax increases under consideration include raised taxes on stock buybacks and tighter restrictions on corporations’ ability to deduct compensation for highly paid employees, as noted by the New York Times.
If implemented, the proposed increase would reverse a tax cut signed into law by Trump during his first term, which lowered the top income tax rate from 39.6% to 37%. Currently, the 37% rate applies to individuals with annual incomes of $626,350 or more.
Olivia Brown for TROIB News
U.S. President Donald Trump has suggested increasing tax rates for the nation’s wealthiest individuals, according to various media reports that cite sources close to the discussions. This measure is intended to offset other tax cuts included in Trump's economic package.
Lawmakers are currently focusing on passing a comprehensive legislative package that is projected to yield $1.5 trillion in savings over the next decade. The bill seeks to further Trump’s policies related to taxation, defense, energy, immigration, and border security, alongside increasing the debt ceiling.
Last month, the president dismissed a proposal to raise taxes on rich Americans, contending that it could be “disruptive” and might push millionaires to leave the U.S.
The new proposal emerges during talks about limiting the overall cost of the bill, for which lawmakers are exploring funding options, potentially through cuts to entitlement programs such as Medicaid health coverage for lower-income Americans.
According to the New York Times, the revised proposal calls for instituting a new 39.6% tax bracket for individuals with annual earnings of at least $2.5 million or couples earning $5 million per year. This information was shared by sources familiar with Trump's request to House Speaker Mike Johnson.
Bloomberg reported, citing an unnamed source, that the president has also reiterated his desire to eliminate the carried interest tax break utilized by venture capitalists and private equity fund managers.
Other potential tax increases under consideration include raised taxes on stock buybacks and tighter restrictions on corporations’ ability to deduct compensation for highly paid employees, as noted by the New York Times.
If implemented, the proposed increase would reverse a tax cut signed into law by Trump during his first term, which lowered the top income tax rate from 39.6% to 37%. Currently, the 37% rate applies to individuals with annual incomes of $626,350 or more.
Olivia Brown for TROIB News
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