Congressional Republicans are weighing tax increases for the wealthy as President Donald Trump has taken a dramatic break from decades of GOP tax orthodoxy, taking a dramatic break from GOP tax orthodoxy.
The talks are still in the early stages, and lawmakers are reportedly warning that the tax hike may not become the final bill. However, the consideration of tax increases highlights the challenges Republicans face when balancing demands from fiscal conservatives and populists.
New: Congressional Republicans are considering raising taxes on extremely wealthy people as part of President Trump’s ambitious, populist legislative plan, “Big Beautiful Bill.” One proposal under discussion is to raise the top tax on revenues above $1 million to 39.7%.
– Election Wizard (@ElectionWiz) April 17, 2025
One proposal under discussion is a 40% top tax bracket for revenues over $1 million. Bloomberg reported first.
Republican Sen. Chuck Grassley, a Republican Sen., confirmed the proposal when asked about taxation of billionaires at City Hall on Tuesday.
“As a member of the Finance Committee, you may be surprised to see that the group of people you are talking about is raising it from 37% to 39.6%,” Grassley said.
https://www.youtube.com/watch?v=qaozast4gra
“Now that doesn’t mean it’s going to happen,” Grassley revealed. “The rationale for that is that we can take that money and use it to increase the child tax credit.”
The current top tax bracket is 37% with revenues exceeding $609,351. Republican lawmakers moved their budget blueprint last week without tax increases.
Raising taxes on the wealthy could help the bill’s costs, but the Finance Hawks hope it will be neutral to the deficit, while moderates oppose Medicaid cuts. House GOP leaders are reportedly opposed to tax increases.
Former President Donald Trump also criticized the top tax rates, warning during his campaign that Democrats would push it “up to 39 or 40 percent, or even 50 percent.”
House Speaker Mike Johnson pushed back the idea of raising taxes last week by saying, “We’re trying to cut taxes for everyone.”
He highlighted Republicans’ commitment to tax cuts reflected in Republican New York State Rep. Elise Stefanik and former House Speaker Newt Ginrich. (Related: Newt Ginrich: Republican tax increasers must be stopped)
Still, some Republicans are embracing the idea.
Did Democrats give him the credit even after George Bush Sr. broke his tax promise and agreed to raise the tax rate?
no.
In fact, Bill Clinton ran a non-stop ad against Bush for the tax increase in 1992, accusing him of wanting a “tax cut for the rich.” pic.twitter.com/wqxbezpirf
– John Kurtz (@johnkartch) April 17, 2025
Maryland Republican Rep. Andy Harris, chairman of the House Freedom Caucus, called the 40% tax bracket a Trump priority.
Republican Texas Rep. Chip Roy also broke down as party leader, warning that unfunded tax cuts could equally damage.
