President Donald Trump is considering a small tax increase to help wealthy Americans pay his priorities to boost the middle and working classes.
A source familiar with Trump’s thinking told Fox News Digital that he is considering increasing the percentage of individuals who make more than $2.5 million by 2.6% from 37% to 39.6%.
He said R-La about the idea on Wednesday’s phone. The two, who are quietly pushed Mike Johnson, spoke to Fox News Digital.
It comes as Republicans tackle a massive law that promotes Trump’s priorities on taxes, border security, immigration, energy, defense and national debt.
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President Donald Trump is helping to patrol House Republicans’ budget bills. (Getty Images)
The difference in forecasts suggests that the bill is likely to add trillions of dollars to the country’s deficit over the next decade, so the Finance Hawks are looking for ways to ease it and set up America for a government that doesn’t bloat by combining new priorities with deep spending cuts elsewhere.
The tax portion of the bill is expected to be the most expensive portion.
Republicans hope to extend the 2017 Tax Cuts and Employment Act (TCJA) and pay new Trump priorities, including tips, overtime wages and eliminating social security taxes for retirees.
The TCJA previously reduced the tax on the highest bracket from 39.6% to 37%, but is set to expire at the end of 2025. The current top tax bracket is $609,350 for single-income earners.
Sources familiar with Trump’s ideas said doing so would help middle-class and working classes pay “large” tax cuts, and would protect Medicaid compensation for millions of Americans.
Punchbowl News first reported details of Trump Johnson’s phone.
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President Donald Trump hopes Republicans will cut taxes on cutting edge and overtime wages. (AP Photo/Evan Vucci)
It is not yet clear what Republicans will decide. Or they may decide to raise taxes to the best earners in the end, but details are expected to emerge in the coming days.
The Ways & Means Committee, the House Tax Writing Committee, will meet Tuesday afternoon to advance that portion of Trump’s bill.
Talks about potential tax increases for the wealthy have sparked a deep rift within the Republican Party.
Mainstream conservatives have balked in the argument that they raise the fees for everyone, claiming it will have a negative impact on job creators, but populists and more moderate Republicans have come up with such ideas to benefit the middle and working classes to pay Trump’s priorities.
“It makes no sense to raise taxes on America’s highest earners and biggest job creators,” Mark Short, former Chief of Staff for former President Wiese Mike Pence and a key part of the TCJA negotiations, told Fox News Digital.
“Some of the current administrations don’t understand why there are reasons why they are pushing Congress to raise the highest rates.
Mike Pence’s former vice president and his allies are opposed to raising taxes on wealthy people. (Drew Anger/Getty Images)
Other Republicans told Fox News Digital in recent weeks that they thought the idea was popular.
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“I’m open to what the President or the Treasury Secretary has in mind, and I’d like to see some of the numbers behind it and how it will affect the economy,” R-Ind.
“What I’ve heard from people in the tax brackets at the top is that they’re willing to pay more payments as long as they know it’s paying off their debts. They don’t want to see it go for more spending.”
Fox News Digital has reached out to the White House and Johnson offices 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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