Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
President Trump announces multiple judicial nominees, accuses court...
Top House committees accuse Dem fundraising giant of...
Trump to rename Persian Gulf the Arabian Gulf...
‘New sheriff in town’: State finance leader rallies...
Trump announces MAHA advocate Casey Means will be...
Trump offers to help India, Pakistan amid growing...
Lone Republican becomes only lawmaker to vote against...
Trump halts military strikes on Houthis but expert...
Retired judges criticize Trump admin over arrest of...
REAL ID deadline comes and goes – airports...
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Politics

White House quietly floats millionaire tax hike proposal in Congress as GOP leaders signal opposition

by admin April 16, 2025
April 16, 2025
White House quietly floats millionaire tax hike proposal in Congress as GOP leaders signal opposition

White House aides are quietly floating a proposal within the House GOP that would raise the tax rate for people making more than $1 million to 40%, two sources familiar with discussions told Fox News Digital, to offset the cost of eliminating tips on overtime pay, tipped wages, and retirees’ Social Security.

The sources stressed the discussions were only preliminary, and the plan is one of many being talked about as congressional Republicans work on advancing President Donald Trump’s agenda via the budget reconciliation process.

Trump and his White House have not yet taken a position on the matter, but the idea is being looked at by his aides and staff on Capitol Hill.

Meanwhile House GOP leaders including Speaker Mike Johnson, R-La., have publicly opposed the idea of any tax hikes.

‘I’m not a big fan of doing that. I mean, we’re the Republican Party and we’re for tax reduction for everyone,’ Johnson said on ‘Sunday Morning Futures.’

One GOP lawmaker asked about the proposal and granted anonymity to speak candidly said they would be open to supporting it but preferred a higher starting point than $1 million.

They said the reaction was ‘mixed’ among other House Republicans. But not all House GOP lawmakers are privy to the discussions, and it’s not immediately clear how wide the proposal has been circulated.

Nevertheless, it signals that Republicans are deeply divided on how to go about enacting Trump’s tax agenda.

Extending Trump’s 2017 Tax Cuts and Jobs Act (TCJA) and enacting his newer tax proposals is a cornerstone of Republicans’ plans for the budget reconciliation process.

By lowering the Senate’s threshold for passage from 60 votes to 51, it allows the party in power to skirt opposition to pass a sweeping piece of legislation advancing its own priorities – provided the measures deal with tax, spending, or the national debt.

Extending Trump’s tax cuts is expected to cost trillions of dollars alone. But even if Republicans use a budgetary calculation to hide its cost, known as current policy baseline, they will still have to find a path forward for new policies eliminating taxes on tips, overtime pay, and retirees’ Social Security checks.

Hiking taxes on the ultra-wealthy could also serve to put Democrats in a tricky political situation in forcing them to choose between supporting Trump’s policies and opposing an idea they’ve pushed for years.

The top income tax rate is currently about 37% on $609,351 in earnings for a single person or $731,201 for married couples. 

But raising the rate for millionaires could be one way to pay for Trump’s new tax policies.

House Freedom Caucus Chairman Andy Harris, R-Md., one of the deficit hawks leading the charge to ensure new spending is paired with deep cuts elsewhere, said ‘That’s one possibility.’

‘What I’d like to do is I’d actually like to find spending reductions elsewhere in the budget, but if we can’t get enough spending reductions, we’re going to have to pay for our tax cuts,’ Harris told ‘Mornings with Maria’ last week.

‘Before the Tax Cuts and Jobs Act, the highest tax bracket was 39.6%, it was less than $1 million. Ideally, what we could do, again, if we can’t find spending reductions, we say ‘Okay, let’s restore that higher bracket, let’s set it at maybe $2 million income and above,’ to help pay for the rest of the president’s agenda.’

But Johnson’s No. 2, House Majority Leader Steve Scalise, R-La., again poured cold water on the idea Tuesday.

‘I don’t support that initiative,’ Scalise told ‘Mornings with Maria,’ though he added, ‘everything’s on the table.’

‘That’s why you hear all kind of ideas being bounced around. And if we take no action, then you’d have over 90% of Americans see a tax increase,’ Scalise warned.

Bloomberg News was first to report House Republicans’ 40% tax hike proposal.

When reached for comment, the White House pointed Fox News Digital to comments by Press Secretary Karoline Leavitt earlier on Tuesday when she said Trump had not made up his mind on another proposal to raise the corporate tax rate.

‘I’ve seen this idea proposed. I’ve heard this idea discussed. But I don’t believe the president has made a determination on whether he supports it or not,’ Leavitt said.

Fox News Digital also reached out to Johnson’s office for comment.

This post appeared first on FOX NEWS

previous post
Bernie Sanders, AOC and other anti-Trump progressives haul in big bucks for 2026 midterms
next post
Soaring Medicare prescription drug prices targeted in Trump’s new executive order

You may also like

His brothers’ keeper: Liran Berman calls for urgent...

March 27, 2025

Senate advances NDAA, teeing up final passage for...

December 17, 2024

Bernie Sanders, AOC take aim at Trump and...

March 21, 2025

HHS axes more than $300M in gender, DEI-related...

March 28, 2025

Israel keeping its ‘eyes open’ for Iranian attacks...

November 22, 2024

Drag shows, Arabic Sesame Street, lonely rats: GOP...

December 24, 2024

Experts say first week of ‘Trump effect’ is...

January 25, 2025

House balance of power still undecided a week...

November 12, 2024

How Trump, AG Bondi can persuade Democrats to...

January 30, 2025

Project 2025 remains nonpartisan, true to 1980s good-gov’t...

September 3, 2024

Recent Posts

  • President Trump announces multiple judicial nominees, accuses court system of blocking him from doing his job
  • Top House committees accuse Dem fundraising giant of facilitating ‘bad actors’ in bombshell DOJ letter
  • Trump to rename Persian Gulf the Arabian Gulf ahead of US-Iran nuclear talks, Middle East trip: report
  • ‘New sheriff in town’: State finance leader rallies around key Trump victory saving ‘taxpayer dollars’
  • Trump announces MAHA advocate Casey Means will be new surgeon general nominee

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (710)
    • Investing (2,051)
    • Politics (2,543)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Sightful Invest. All Rights Reserved.