Trump Signals Flexibility to Tax Hike on Wealthiest Americans/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump said he’s “OK” with Republicans raising taxes on wealthy Americans, despite cautioning about the political risks. The idea, now under debate among GOP lawmakers, is being floated as a way to fund extensions of Trump’s 2017 tax cuts. Proposals include raising the top rate or creating a new bracket for ultra-high earners.
Trump’s Tax Shift on the Rich Quick Looks
- Trump says he’s “OK” with a tax hike for the rich.
- The top income tax rate could rise from 37% to 39.6%.
- Proposal would target individuals earning $2.5M+, couples $5M+.
- Trump warns of political fallout, citing George H.W. Bush.
- The move aims to offset costs of extending 2017 tax cuts.
- House GOP debates options amid $4 trillion tax extension cost.
- Trump’s final tax bill may exclude the tax increase.
- Economic adviser Kevin Hassett says Trump is “not a strong advocate.”
- New bracket could raise $59.3B over a decade.
- House leaders and Treasury Secretary Bessent meet regularly on tax strategy.
Trump Signals Flexibility to Tax Hike on Wealthiest Americans
Deep Look
Trump Says He’s OK With Raising Taxes on the Rich—If Republicans Choose To
WASHINGTON — In a surprising turn, President Donald Trump said Friday he would be “OK” with Republican lawmakers raising taxes on the wealthiest Americans, as negotiations intensify around how to fund the extension of his signature 2017 tax cuts.
While cautioning Republicans about the political risk of even a modest tax hike, Trump posted on Truth Social that he would “graciously accept” such a move to help offset the cost of sweeping tax and spending proposals under discussion in Congress.
“Republicans should probably not do it, but I’m OK if they do!!!” Trump wrote, referencing the political blowback former President George H.W. Bush faced after famously pledging “no new taxes” before ultimately raising them.
Trump also floated the idea of increasing the top marginal income tax rate from 37% to 39.6%—a rollback to pre-2017 levels—for individuals earning $2.5 million or more and joint filers earning $5 million or more, according to a source familiar with internal discussions.
Though Trump had previously campaigned on cutting taxes for all income levels, this marks one of his clearest signals yet that he may support some degree of tax increase on high earners to help finance his broader fiscal agenda.
GOP Caught Between Populist Pressure and Tax Cut Goals
The idea is far from universally accepted within the Republican Party. Many House GOP members, especially within the Ways and Means Committee, remain wary of any tax hike—even a targeted one. Trump’s MAGA base, however, has long demanded that the ultra-wealthy pay “their fair share,” adding pressure on party leaders.
Republicans are currently seeking ways to pay for over $4 trillion in tax cut extensions, which are set to expire at the end of 2025. Trump and Republican lawmakers want to include the extensions, as well as eliminate taxes on tips, overtime, and some loan interest, in one unified budget package expected later this summer.
Two Main Proposals Under Review
Lawmakers have floated two possible strategies:
- Restore the Pre-2017 Top Tax Rate:
Raise the top rate back to 39.6%, which could generate $409 billion over ten years, according to the Tax Foundation. - Create a New High-Income Bracket:
Tax individuals earning $2.5 million+ or couples earning $5 million+, a move estimated to raise $59.3 billion over a decade. This bracket would affect roughly 150,000 to 200,000 households.
Some lawmakers are also considering pairing any increase with a restoration of the State and Local Tax (SALT) deduction, which has become another flashpoint within the Republican caucus.
Trump’s Economic Team Responds
Despite Trump’s public openness, National Economic Director Kevin Hassett clarified Friday that the president “is not a strong advocate” for raising taxes on the rich.
“He’s focused on zero taxes on tips, overtime, and helping small businesses,” Hassett told reporters. “He understands the final bill will reflect compromises with Congress.”
When asked how the White House plans to fund the full package, Hassett said spending cuts identified in the budget process—along with the “dynamic scoring” of tax cuts—would offset costs. He didn’t specify which spending areas would be cut.
“We’re confident this plan will reduce the deficit and bring stability to the bond markets,” he added.
House Republicans Weigh Timing and Tactics
House Ways and Means Chairman Jason Smith is expected to meet with Trump at the White House to discuss the legislative calendar and possible inclusions in the tax bill. Hassett and Treasury Secretary Scott Bessent have been holding near-weekly meetings with House Speaker Mike Johnson and other top GOP figures to fine-tune the proposal.
While Trump’s rhetoric has shifted, it’s still unclear if any tax hike will make it into the final version of what he calls his “one big beautiful bill.” The legislation is expected to merge tax cuts, spending changes, and populist measures aimed at workers and small business owners.
For now, Trump’s remarks add a twist to the party’s ongoing debate over how to fund ambitious cuts without deep slashes to popular programs or ballooning the deficit—a balance Republicans have yet to strike.
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