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Republicans Weigh 39.6% or 40% Top Tax Rate for Earners Over $1 Million; Trump Signals Openness

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Updated Apr 16, 2025, 05:14 PM

Republican lawmakers in the White House, Senate, and House are actively considering raising taxes on the wealthiest Americans, drafting analyses to create a new tax bracket for top earners. Proposals under discussion include raising the top marginal income tax rate from 37% to 39.6% or introducing a 40% rate for individuals earning $1 million or more annually, with the 2017 tax law's expiration at the end of the year set to trigger an automatic tax rate increase in 2026 if not renewed. This debate reflects a split within the GOP between populist and traditional factions, with President Donald Trump signaling openness to the idea. Senators Mike Crapo, Chuck Grassley, John Thune, Thom Tillis, and Mike Rounds have acknowledged the discussions, while House Majority Leader Steve Scalise and Senator Ted Cruz have voiced opposition, citing potential impacts on businesses and the party's tax philosophy. In Washington state, Democratic lawmakers have introduced five new tax bills to address a $16 billion budget deficit. The proposals include increases in capital gains and estate taxes, higher business and occupation taxes, expanded sales taxes on services, adjustments to property tax caps, and a new tax on Tesla and other electric vehicle credits. The new measures do not include a wealth tax and are intended to generate revenue for education, healthcare, and public services, with hearings scheduled before the legislative session ends.

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#White House #Senate #House #Americans #GOP #Donald Trump #Mike Crapo #Chuck Grassley #John Thune #Thom Tillis #Mike Rounds #Steve Scalise #Ted Cruz #Washington #Democratic #Tesla

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Sources

bloomberg.com(3)nbcnews.com(2)seattletimes.com mynorthwest.com

Jonathan Choe

@choeshow

TAX BURDEN: During the @letsgowa property tax protest in Olympia, three women from different walks of life shared how tax increases pushed by Democrats would impact them. This pretty much represents most of WA. Now it's on @GovBobFerguson to listen. https://t.co/yEsGAPwqTE

Sahil Kapur

@sahilkapur

WATCH: Chuck Grassley is confronted by a voter in Iowa about why Republicans aren’t making billionaires pay more. “It might surprise you,” he says; Finance Committee is “going to discuss” raising the top tax rate from 37% to 39.6% “on the very group of people you talk about.” https://t.co/jGriXDnj79

Jonathan Choe

@choeshow

NEW: Hundreds of people rallied in Olympia, WA against looming tax hikes being pushed by Democrats. They're trying to make up for a $16 billon state budget shortfall. Advocacy group @letsgowa alongside Republican lawmakers vowed to fight. As usual, @JimWalshLD19 led the charge. https://t.co/k6O0Re2M0S