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Trump Floats 39.6% Top Tax Rate on Incomes Above $2.5 Million

75 posts • OpenAI (o3)

Updated May 9, 2025, 07:14 PM

President Donald Trump privately pressed House Speaker Mike Johnson in a Wednesday phone call to raise the top marginal income-tax rate and eliminate the carried-interest loophole, according to multiple media reports. The proposal would restore the top rate to 39.6% from 37% for individuals earning more than $2.5 million a year. An independent tax policy estimate puts the potential revenue gain, including the carried-interest change, at roughly $67.3 billion. Trump has portrayed the higher levy as a way to finance middle- and lower-income tax relief and to protect Medicaid within his sweeping economic agenda, which he calls the “big, beautiful bill.” The plan represents an unusual break from Republican orthodoxy and has already met resistance from party lawmakers wary of any tax increase. The president’s commitment to the idea remains fluid. In a social-media post on Thursday, he said Republicans “probably should not” raise taxes on the wealthy but added he would “graciously accept” a modest increase if it advances his agenda. White House economic advisers later stressed that the change is not a top priority, underscoring the uncertainty surrounding the provision as House leaders race to finalize the legislation.

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More Perfect Union

@MorePerfectUS

Yesterday Trump urged Congress to raise taxes on the rich, but less than 24 hours later he's saying Republicans probably shouldn't tax the rich and that even a “tiny” bit more tax for the rich would be a problem. https://t.co/eUZNLSsgvv

@RT_com

Trump now saying he'd 'GRACIOUSLY' accept tiny tax raise for the rich But it's not happening or he'd be handing 'Radical Left Democrat Lunatics' sound bite to use against him 'In any event, Republicans should probably not do it' https://t.co/seCujnC0te https://t.co/pNiahBQvm7

Glenn Beck

@glennbeck

Is it true that President Trump wants to raise taxes on the rich? OMB Director @russvought sets the record straight: “[Trump] has always been very focused on the things he ran on. This is not something he ran on. [No tax on overtime and no tax on tips are] really what we’ve been https://t.co/BqiitTJVKd

The Bulwark

@BulwarkOnline

Q: "The president posted this morning that he would be okay with raising taxes on the rich. Is that something that is being seriously considered?" Hassett: "The president is not a strong advocate of that." https://t.co/NcKDsI8iia

Forbes

@Forbes

Trump said he supports raising taxes on the wealthy to pay for other cuts in his signature economic package, as congressional Republicans have struggled to find ways to offset the spending reductions without slashing entitlement programs. Read more: https://t.co/5UxLaTJfKM https://t.co/7FZ4kCzcgC

#Donald Trump #House #Mike Johnson #Trump #Medicaid #Republican #Republicans #White House

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Sources

forbes.com(4)washingtontimes.com(3)bloomberg.com(3)foxnews.com(2)

Forbes

@Forbes

USA TODAY

@USATODAY

Trump said he could accept higher taxes on the rich – a reversal from his previous opposition. 'Republicans should probably not do it, but I’m OK if they do!!!' https://t.co/iK1QZLfAlU

John Arnold

@JohnArnoldFndtn

Trump is floating an increase in top marginal income tax rate to raise $. But, including state/local, the top rate is already in 40s for most and >50% for some. Better is to tax cap gains at death. It'd raise twice the money, create fewer distortions, and not disincentivize work.