Trump Presses Johnson to Raise Top Tax Rate to 39.6% for $2.5 Million Earners, Markup Set for Tuesday

President Donald Trump privately urged House Speaker Mike Johnson in a phone call on Wednesday to raise the top federal income tax rate and close the carried interest loophole, according to multiple sources. Trump is considering increasing the top tax rate for individuals earning $2.5 million or more annually from 37% to 39.6%. This proposal is intended to help finance tax cuts for the middle and working classes and protect Medicaid coverage for millions of Americans. The carried interest loophole, which allows private equity and venture capital managers to pay lower tax rates on certain income, is also targeted for elimination in Trump's discussions with Johnson. The House Ways and Means Committee is scheduled to begin markup of the tax bill on Tuesday at 2 p.m. ET. The tax legislation is part of a broader package, referred to by Trump as his 'big, beautiful bill,' that includes priorities on taxes, border security, immigration, energy, defense, and the national debt. The current top tax bracket is $609,350 for single income earners, but the proposed increase would apply only to those making $2.5 million or more. The 2017 Tax Cuts and Jobs Act, which lowered the top rate from 39.6% to 37%, is set to expire at the end of 2025. Republicans are divided over the proposed tax hike for high earners. While some mainstream conservatives oppose the measure, citing concerns for job creators, others are open to it if it helps reduce the national debt or funds middle-class tax relief. The Ways and Means Committee chair is scheduled to meet with Trump to discuss the bill.