Trump floats raising taxes on the rich to pay for his sweeping tax and spending cuts package | CNN Politics

Trump's Proposed Tax Hike

President Trump has expressed willingness to raise taxes on wealthy Americans to finance Republicans' extensive tax and spending cuts. This proposal, however, faces significant opposition from fellow GOP lawmakers who are struggling to find sufficient spending cuts to balance the large tax reductions.

Congressional Debate

House Republicans are grappling with finding $1.5 trillion in spending cuts to offset trillions in tax cuts. Two main ideas are being debated within the House Ways and Means Committee:

• Letting tax breaks for the wealthiest expire, reverting their top income tax rate to 39.6% (saving approximately $409 billion).
• Establishing a new tax bracket for individuals earning over $2.5 million or couples earning over $5 million (raising roughly $59.3 billion over a decade).

These proposals have generated differing opinions among Republicans, with some fearing negative impacts on small business owners.

Conflicting Statements and Economic Outlook

While Trump has indicated support for taxing the wealthy, his economic advisor stated he is not a strong advocate for the idea. The White House, while acknowledging the need for substantial spending cuts, has not specified which areas will be targeted. They express confidence in reducing the deficit, despite the significant financial implications of the proposed tax and spending measures.

Ongoing Negotiations

Discussions are ongoing between House Ways and Means Chairman Jason Smith and the White House, with plans for Smith to outline the House's tax bill schedule. Frequent meetings between the White House, Treasury Secretary Scott Bessent, and House Speaker Mike Johnson are underway to address these budgetary challenges.