President Donald Trump on Friday sent mixed signals of cautious support for a possible tax increase on the wealthiest Americans — while advising Republicans not to lean into it politically — as lawmakers on Capitol Hill work to finalize a sweeping legislative package that carries the weight of Trump’s second-term agenda.
In a characteristically candid post on Truth Social, the president said GOP lawmakers should “probably not” raise taxes on high-income earners but added, “I’m OK if they do!!!” The statement follows reports that the White House has floated allowing a portion of Trump’s signature 2017 tax cuts — the top marginal rate cut — to expire for the ultra-wealthy.
“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,” Trump wrote. “NO, Ross Perot cost him the Election! In any event, Republicans should probably not do it, but I’m OK if they do!!!”
According to multiple sources familiar with internal discussions, the White House has proposed letting the top income tax rate — currently 37%, down from the pre-2017 level of 39.6% — return to its higher rate, but only for individuals making more than $2.5 million or joint filers earning over $5 million. Other elements of the Trump-era tax law, including middle-class and business tax cuts, would be extended.
The move is part of a larger legislative effort to pass a Trump-endorsed “America First” package, which aims to deliver a mix of tax policy, regulatory rollbacks, and spending reforms that align with the president’s economic vision. But Republicans in Congress remain divided over how to shape the bill — particularly on questions of taxation and entitlement spending.
Conservatives have called for the legislation to be deficit-neutral and have pushed for reforms to programs like Medicaid. Moderates and centrists, particularly from high-tax states like New York and California, are advocating for a costly expansion of the state and local tax (SALT) deduction cap, which would benefit their constituents but increase the bill’s price tag.
Trump’s willingness to entertain a slight increase on the rich — a rare break from Republican orthodoxy — appears to be driven by both policy and politics. In an interview last month with Time magazine, he said, “I certainly don’t mind having a tax increase,” but acknowledged the political risks. “I actually love the concept, but I don’t want it to be used against me politically, because I’ve seen people lose elections for less.”
Still, House Republican leaders have publicly rejected the idea. Speaker Mike Johnson (R-La.) said in an interview last month that he did not expect a tax hike to be part of the final package. “Our party is the group that stands against that, traditionally,” Johnson said.
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