• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Editor's Pick

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

by April 16, 2025
written by April 16, 2025

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
0 comment
0
FacebookTwitterPinterestEmail

previous post
Soaring Medicare prescription drug prices targeted in Trump’s new executive order
next post
Pentagon deputy chief of staff is second Hegseth advisor removed amid DOD leak probe

related articles

Trump denounces court’s ‘political’ tariff decision, calls on...

May 30, 2025

President Trump teases ‘last day, but not really’...

May 30, 2025

State Dept says DOGE’s changes will be permanent...

May 30, 2025

Jill Biden should have to answer for ‘cover...

May 29, 2025

DOGE staffing shakeup as Elon Musk hangs up...

May 29, 2025

Hawley urges DOJ probe of Chinese trucking company

May 29, 2025

Less than half of DOGE-terminated contracts can be...

May 29, 2025

Flashback: Top five wildest moments from Elon Musk’s...

May 29, 2025

Sen Ron Johnson suggests he may not run...

May 29, 2025

Justice Department tells American Bar Association it will...

May 29, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Judge unseals key filing in special counsel’s election case against Trump

    October 2, 2024
  • Trump teases he’d bail out Harris campaign debts for sake of ‘unity’ in latest troll

    November 10, 2024
  • The long line of the papacy: Francis’ death renews focus on the church’s most powerful figures

    April 22, 2025
  • KFC moves U.S. headquarters from Kentucky to Texas

    February 19, 2025
  • Regime-dominated Venezuelan Supreme Court rules Maduro election winner despite allegations of fraud

    August 23, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,723)
  • Investing (624)
  • Stock (773)

Latest Posts

  • Kamala Harris’ ‘friends’ trash her big week with ‘garbage’ insults and attacks on pro-Trump women

    November 1, 2024
  • Trump’s drastic NSC cuts spark debate: Does fighting the ‘Deep State’ put national security at risk?

    May 29, 2025
  • Secret Service protection bill passes House unanimously after Trump assassination attempts

    September 20, 2024

Recent Posts

  • World leaders react as Trump re-enters the White House

    January 21, 2025
  • Trump expected to slam Harris on 3rd anniversary of deadly Afghanistan attack that killed 13 Americans

    August 26, 2024
  • Democrats turn on each other over Trump address stunts

    March 6, 2025

Editor’s Pick

  • VP finalist Marco Rubio arrives at RNC with praise for Trump following selection of JD Vance as running mate

    July 17, 2024
  • David Roche warns of potential bear market in 2025 amid AI bubble concerns

    August 12, 2024
  • The Dow Jones Forecast: Strong Gains in The Stock Market

    July 16, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.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 © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock