On Friday, President Donald Trump expressed a cautious openness to the prospect of increasing taxes on the wealthiest Americans, while grappling with the political implications of such a proposal. He suggested that his fellow Republicans might “probably” oppose the tax hike.
This discourse emerged after Trump initiated a conversation with House Speaker Mike Johnson, R-La., concerning the potential inclusion of a tax increase for high earners in the significant tax and spending bill aimed to be passed by the GOP this year.
This development marks a notable shift as Trump—whose agenda is significantly linked to what he terms the “one, big, beautiful bill” navigating through a divided Congress—appears willing to challenge the traditional Republican stance on taxing the wealthy.
In a post on Truth Social on Friday morning, he indicated that he and “all others” would “graciously” accept an “even a ‘TINY’ tax increase for the RICH” to aid “lower and middle income workers.”
“The problem with even a ‘TINY’ tax increase for the RICH, which I and all others would graciously accept in order to help the lower and middle income workers, is that the Radical Left Democrat Lunatics would go around screaming, ‘Read my lips,’ the fabled Quote by George Bush the Elder that is said to have cost him the Election. NO, Ross Perot cost him the Election! In any event, Republicans should probably not do it, but I’m OK if they do!!!” — Donald Trump, Truth Social post
However, Trump cautioned that the idea could provoke backlash from the “Radical Left Democrat Lunatics,” who he claimed would echo George H.W. Bush’s iconic 1988 campaign promise of no new taxes, which became a political vulnerability leading to his defeat in the 1992 election.
Despite this historical reference, Trump dismissed the narrative that Bush’s tax promise was solely responsible for his electoral loss, stating, “NO, Ross Perot cost him the Election!”
As he wrapped up his thoughts, Trump remarked, “In any event, Republicans should probably not do it,” yet quickly followed with, “I’m OK if they do!!!”
This dialogue could intensify the pressure on GOP leaders who are already facing challenges in drafting a bill that adheres to Trump’s aspirations for substantial tax reductions while maintaining fiscal prudence that would satisfy party fiscal conservatives.
During his campaign and presidency, Trump pledged to eliminate taxes on overtime pay, service workers’ tips, and Social Security for seniors, in addition to extending the corporate tax cuts instituted in 2017.
This Friday, Rep. Jason Smith, R-Mo., chairman of the House Ways and Means Committee, is scheduled to meet with Trump, as first reported by Politico.
On Thursday, Johnson informed Republicans that funding for the $4.5 trillion in tax cuts they previously targeted might be unattainable, according to Politico.
During a phone conversation with Johnson on Wednesday, Trump introduced the possibility of a new tax bracket for high earners while allowing exceptions for small businesses, as reported by Finance Newso.
Additionally, Trump advocated for closing the “carried interest loophole,” a provision in the tax code exploited by Wall Street investors, as per NBC News reports.
This story is still developing. Please stay tuned for updates.
