Trump Presses Johnson to Lift Top Rate to 39.6% for Incomes Above $2.5m, Then Softens Stance

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Updated May 9, 2025, 01:56 PM

President Donald Trump urged House Speaker Mike Johnson during a private phone call on Wednesday to raise the top marginal income-tax rate and eliminate the carried-interest preference, according to reports from Punchbowl News, Bloomberg and Reuters. The proposal would lift the rate to 39.6% from 37% for individuals earning more than $2.5 million a year, a reversal of a key element of the 2017 tax overhaul and a break with traditional Republican tax policy. Johnson and Republican tax writers are finalizing a wide-ranging package that also addresses the state-and-local tax deduction, estate-tax thresholds and Medicaid funding. The House Ways and Means Committee plans to begin marking up the legislation on Tuesday at 2 p.m. Eastern time, but party leaders have not reached consensus on the president’s late-stage request to tax high-income earners more heavily. Trump moderated his position on Friday, writing on his social-media platform that Republicans "probably" should not raise taxes on the wealthy, though he would "graciously accept" a "tiny" increase if the revenue were used to benefit lower- and middle-income workers. The shifting message highlights internal GOP divisions over how to finance the administration’s domestic agenda without alienating core conservative voters.

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Sources

bloomberg.com(3)politico.com(2)reuters.com(2)washingtonpost.com(2)

@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