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White House aides have quietly floated the proposal within the House GOP, raising tax rates for people making more than $1 million to 40%, two sources familiar with the discussion told Fox News Digital, offsetting costs of eliminating overtime pay, wage slopes and social security tips for retirement.
Sources stress that the debate is preliminary, and many have spoken about the plan as Congressional Republicans work to advance President Donald Trump’s agenda through the budget settlement process.
Trump and his White House have yet to take a stand on the issue, but the idea is being seen by his entourage and staff on Capitol Hill.
Meanwhile, speakers Mike Johnson and R-La. House GOP leaders, including those who are publicly opposed to the idea of paying taxes.
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Speaker Mike Johnson is working to pass President Trump’s agenda through the budget adjustment process (Getty Images).
“I’m not a huge fan of doing that. I mean, we’re Republicans and we’re tax cuts for everyone,” Johnson told “Sunday Morning Futures.”
One GOP lawmaker asked about the proposal and said that anonymity and speaking out openly was open to them supporting it, but preferred a starting point higher than $1 million.
They said the response was “mixed” among other House Republicans. However, not all House GOP lawmakers know the debate, and it is not immediately clear how widely the proposal is circulating.
Nevertheless, it shows that Republicans are deeply divided on the way they enact Trump’s tax agenda.
Meet Trump Pick’s lawmakers speaking at the Full House GOP conference to Johnson
Extending Trump’s 2017 Tax Cuts and Employment Act (TCJA) and enacting his new tax proposal is the basis of the Republican plan for the budget adjustment process.
By lowering the Senate’s 60-to-51 pass threshold, it allows political parties to skirt the opposition and allows them to pass drastic legislation that advances their own priorities, subject to measures relating to tax, expenditure or government bonds.
Extending Trump’s tax cuts is expected to cost just trillions of dollars. But even if Republicans use budget calculations to hide costs known as current policy baselines, they still need to find a way for new policies to eliminate tips, overtime pay and taxes on social security checks for retirees.
The hiking tax on super-rich people could help put Democrats in a difficult political situation, in order to support Trump’s policies and force them to resist the ideas they’ve been pushing for years.
House majority leader Steve Scullies is also opposed to raising taxes for the rich (Reuters/Mike Seger)
Currently, the highest income tax rate is $609,351 per person’s revenue, and about 37% at $731,201 for married couples.
But increasing the billionaire tax rate could be one way to pay for Trump’s new tax policy.
House Freedom Caucus Chairman Andy Harris, R-Md. “It’s one possibility,” said one of the deficit-hawks, who will lead the charges to ensure new spending pairs with deep cuts elsewhere.
“What I want to do is actually find spending cuts elsewhere in my budget, but if I don’t get enough spending cuts, I’ll have to pay for the tax cut,” Harris told “Morning Maria” last week.
“Before the Tax Cuts and Employment Act, the best tax bracket was 39.6%, less than $1 million. Ideally, if you can’t find a spending cut, then you should say, “Okay.
However, Johnson’s second place, House majority leader Steve Scullyse and R-La. poured cold water on the idea on Tuesday.
“I don’t support that initiative,” Scullyse told “Mornings with Maria,” but added, “It’s all on the table.”
House Freedom Caucasian Chair Andy Harris shows that it was opened to the idea (Getty Images)
“That’s why we hear all sorts of ideas bounce back. And if we don’t take action, over 90% of Americans will be seeing tax increases,” Scalise warned.
Bloomberg News was the first to report a 40% tax increase proposal for House Republicans.
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When it reached the comment, the White House pointed out Fox News in the comments early Tuesday when Trump said he hadn’t made up his mind about another proposal to raise the corporate tax rate.
“I’ve seen this idea being proposed. I’ve heard this idea being discussed, but I don’t think the president has decided whether he supports it or not,” Levitt said.
Fox News Digital also contacted Johnson’s office for comment.
Elizabeth Elkind is the main reporter of Fox News Digital’s reporting in the House of Representatives. Previous digital bylines seen on Daily Mail and CBS News.
Follow me on Twitter at @liz_elkind and send tips to Elizabeth.elkind@fox.com
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