Trump proposes US tax hike for ultra-wealthy
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The news: US President Donald Trump is proposing a new 39.6% tax bracket for individuals earning at least USD2.5 million per year, or couples making USD5 million, as part of his “big, beautiful bill” to extend the 2017 Tax Cuts and Jobs Act.
Trump reportedly made the request in a call with House Speaker Mike Johnson and is also seeking to eliminate the carried interest tax break for fund managers and raise taxes on stadium and arena owners, people familiar with the discussions told Bloomberg.
The proposal has sparked internal Republican debate, with some lawmakers opposing any rate hikes and others open to targeting top earners.
The numbers: Trump’s full list of tax priorities, including tax cuts for all income levels and eliminating taxes on tips, overtime wages and Social Security benefits, could cost as much as USD11.95 trillion over 10 years, according to the Committee for a Responsible Federal Budget, The Washington Post noted.
GOP leaders are aiming to pair tax cuts with at least USD2 trillion in spending reductions. The House Ways and Means Committee is expected to meet Tuesday to discuss the proposal, according to media reports.
The context: Trump has previously sent mixed signals on taxing the wealthy, musing that such a levy could drive rich Americans to relocate abroad and hurt Republicans politically.
The sources: Fox News, The Washington Post, Bloomberg
