Trump Floats 39.6% Tax on $2.5 Million Earners, Then Says GOP ‘Probably’ Shouldn’t Do It

President Donald Trump privately urged House Speaker Mike Johnson in a Wednesday phone call to include two new provisions in the wide-ranging economic package moving through Congress: lifting the top marginal income-tax rate to 39.6% on earnings above $2.5 million and ending the carried-interest loophole, according to people familiar with the discussion.

White House advisers say restoring the pre-2017 rate could raise roughly $67.3 billion and pay for the middle- and working-class tax cuts at the heart of Trump’s “big, beautiful bill.” The current top rate is 37%, set to expire under the 2017 Tax Cuts and Jobs Act, and the administration argues that letting it lapse would align the code with historical norms.

House Republicans plan to begin formal work on the measure Tuesday, when the Ways and Means and Energy and Commerce committees hold simultaneous 2 p.m. markups, followed by an Agriculture Committee session in the evening. Senior GOP lawmakers warn the proposed tax hike faces strong resistance inside the party, which has long opposed raising rates on high earners.

Amid the pushback, Trump said Friday on Truth Social that Republicans “should probably not” pursue a tax increase on the wealthy but added he would “graciously accept” a “tiny” rise if it helped lower- and middle-income workers—comments that leave Congress grappling with mixed signals as it races to finalize the legislation.