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CV NEWS FEED // President Donald Trump is reviving a proposal to raise taxes on the wealthiest Americans as part of what he’s calling a “big beautiful bill” to expand tax relief for the middle class.
Under the proposal, the top income tax rate would rise from 37% to the pre-2017 level of 39.6% for individuals earning over $2.5 million or $5 million for joint filers. The change would reportedly help offset the cost of extending tax cuts for lower brackets.
According to multiple sources, Trump urged House Speaker Mike Johnson, R-La., in a private call Wednesday to consider including the measure in a broader fiscal package currently under development.
“The President is considering allowing the rate on individuals making $2.5 million or more to revert from 37% to the pre-2017 39.6%. This will help pay for massive middle and working-class tax cuts, and protect Medicaid,” one source said, according to The Hill.
House Republicans are divided on the proposal.
Johnson, who has consistently opposed raising tax rates, expressed his position during a recent Fox News interview.
“We have been working against that idea,” he said. “I’m not in favor of raising the tax rates because… our party is the group that stands against that, traditionally.”
Still, some conservatives see strategic merit in Trump’s proposal.
“I believe all taxes should be lower & that government should be smaller. But, b/c Republicans have only delivered on the former, @realDonaldTrump is SMART to put NET TAX DECREASES with a possible higher top rate on the table IF & ONLY IF we are seriously reforming Medicaid,” Rep. Chip Roy, R-Texas, wrote on X.
Meanwhile, Trump acknowledged the potential political backlash. “I actually love the concept,” he told Time magazine, “but I don’t want it to be used against me politically, because I’ve seen people lose elections for less, especially with the fake news.”
