Raising taxes on the rich isn’t something you usually hear from Republican politicians — but Donald Trump, as always, isn’t following the usual script.
According to recent reports from The New York Times and The Hill, Trump has privately suggested adding a new top income tax bracket of 39.6% for Americans earning over $2.5 million a year. It’s a surprising move that puts the former president at odds with traditional Republican tax policy — and may shake up his own party’s approach to tax reform.
A Shift in Strategy?
Trump’s proposal, reportedly shared with Speaker of the House Mike Johnson, would bring back the same top marginal tax rate that existed before his 2017 Tax Cuts and Jobs Act (TCJA) — but with a twist: it would apply only to those making over $2.5 million, a much higher income threshold than before.
The idea comes as House Republicans work on what Trump calls a “big, beautiful” new tax package. The plan is expected to extend major parts of the TCJA, including broad tax cuts, while adding new ones — like tax relief for overtime pay, Social Security benefits, and tipped service workers. Trump’s millionaire tax, if added, would become part of that larger bill.
Not Everyone’s on Board
The suggestion has caused a stir in Republican circles. Many GOP (The Republican Party, also known as the Grand Old Party (GOP)) lawmakers are strongly opposed to raising taxes on top earners, arguing it would hurt investment and entrepreneurship. “I don’t want to see taxes go up on anybody,” said Senate Majority Leader John Thune in a recent CNBC interview.
Even Trump himself has appeared to backtrack. On his platform Truth Social, he posted that Republicans “probably not” raise even a “TINY” tax on the rich — but added that he’d be “OK if they do!!!”
What’s the Goal?
Some insiders say Trump sees the tax as a way to protect programs like Medicaid, especially as Republicans are also proposing $1.5 trillion in spending cuts. Without new revenue, such cuts could hit popular programs — and put some lawmakers in a difficult political position ahead of the election.
Reintroducing the 39.6% tax rate would be a return to the pre-2017 tax structure, though at a higher income threshold. Currently, the top tax bracket starts at about $626,000 — so this change would only affect the ultra-wealthy.
Still, experts say the proposed increase would have limited impact on federal revenue and barely touch the richest Americans.
Breaking with the GOP Again
This isn’t the only time Trump has hinted at raising taxes on the wealthy. He’s also called for closing the carried interest loophole, a tax break that benefits hedge fund and private equity managers — a move long resisted by Republicans.
Whether Trump will seriously push for these changes — or whether Congress will support them — is still unclear. But the proposals show how Trump is trying to blend populism with conservative economics, appealing to both his working-class supporters and traditional Republican donors.
As the 2024 campaign heats up, Trump’s tax talk may test how much the GOP is willing to bend — and how much the ultra-rich are willing to give.
Prepared by Navruzakhon Burieva
