Trump Says He’s OK with Taxing the Rich — GOP in a Tight Spot
WASHINGTON — Former U.S. President Donald Trump says he’s OK with taxing the rich but warns it could backfire politically. His statement comes as Republican lawmakers consider trimming down a massive tax-cut package they hope to pass this year.
“Honestly, I don’t think Republicans should go down that road—but if they decide to, I won’t stand in the way,” Trump shared on Truth Social this Friday.
His surprising stance has added a twist to the GOP’s already fragile tax negotiations, as internal debates heat up over how to balance fiscal responsibility, election-year politics, and Trump’s 2024 campaign agenda.
GOP Split: Some Want Deep Cuts, Others Worry About Deficits
House Speaker Mike Johnson has started exploring a similar version of the GOP’s once-massive tax overhaul plan
While the original blueprint aimed for $4.5 trillion in cuts, insiders say that number may now shrink to around $4 trillion. Trump, still a dominant force among Republican voters, is breaking ranks with traditional party thinking by being open to taxing the ultra-rich—a move that doesn’t sit well with many in the GOP. “Our focus isn’t on raising taxes—on anyone,” said Senate Republican leader John Thune in a Fox News interview, doubling down on the party’s long-standing commitment to tax cuts.
While Trump remains popular with the party’s base, his openness to raising taxes on the ultra-wealthy clashes with mainstream GOP orthodoxy.
“We don’t want to raise taxes on anyone,” said Senator John Thune, a top Republican in the Senate, during an appearance on Fox News. “We’re about cutting taxes for working Americans.”
The rift reflects deeper ideological tensions within the party: fiscal hawks demand spending cuts, while populist conservatives back Trump’s aggressive tax cut agenda — even if it means taxing the top 1%.
Behind the Scenes: Trump’s Private Push to Adjust Tax Rates
Sources familiar with the matter told Reuters that Trump privately urged Speaker Johnson to consider raising the top individual income tax rate, particularly for ultra-high earners.
Trump’s proposal? Raise the rate from 37% to 39.6% for individuals earning more than $2.5 million and joint filers making over $5 million. Exemptions for small businesses would remain in place.
He also suggested closing certain tax loopholes that benefit Wall Street investors, further signalling his shift away from protecting financial elites.
Trump’s 2017 Tax Cuts at Risk of Expiring
Trump’s long-standing goal has been to make permanent the key provisions of his 2017 Tax Cuts and Jobs Act (TCJA). If nothing is done, a large chunk of those tax breaks will automatically phase out by 2025.
But offsetting those extensions requires finding trillions in budget cuts or new revenue sources — a task proving difficult for a divided GOP. Medicaid cuts and reductions in other federal programs are unlikely to hit the $2 trillion savings mark over the next decade, leaving a fiscal gap that Trump’s team believes could be bridged, in part, by taxing the ultra-rich.
Conservative Divide: Should the Rich Pay More?
While many Republicans oppose tax hikes in principle, some conservatives are warming to the idea if it helps achieve broader goals.
Representative Andy Harris, chairman of the House Freedom Caucus, said restoring pre-TCJA tax brackets for millionaires might be necessary.
“If we can’t find enough spending cuts elsewhere, we should consider returning to the old tax brackets for million-dollar incomes,” Harris wrote on X.
This camp argues that modest tax increases on high earners could help fund Trump’s other priorities, such as middle-class tax relief and border security, without ballooning the deficit.
Trump Frames Tax Hike as Pro-Middle Class, Pro-Medicaid
Trump isn’t embracing tax hikes because he’s had a change of heart — he’s selling them as a trade-off to pay for massive middle-class tax relief and preserve programmes like Medicaid.
In his Friday post, however, he warned that Democrats could exploit even a “small” tax increase on the wealthy to push for broader hikes.
Trump referenced President George H.W. Bush, who famously broke his “no new taxes” pledge and lost his 1992 reelection bid — a cautionary tale for any Republican considering a similar move.
What’s at Stake: 2025 Budget, Border Security, and More
Trump and Republican lawmakers have promised that the extension of the 2017 tax cuts will be part of a comprehensive budget package in 2025. That bill is expected to include:
- Increased military spending
- Stricter border security and deportation funding
- Energy deregulation
- Extensions of Trump-era tariffs
For Trump, this isn’t just about taxes — it’s about locking in his legacy and rallying populist support ahead of a high-stakes election.
Final Word: A Risky Bet in an Election Year
So, Trump says he’s OK with taxing the rich — but only if it helps fund his political priorities and doesn’t give Democrats an opening. He’s walking a tightrope: trying to sound fiscally serious without betraying his populist image.
For Republicans, the dilemma is clear. Do they stick with traditional anti-tax principles or follow Trump’s lead into unfamiliar territory?
With the 2024 election around the corner and the 2017 tax cuts set to expire, this debate is far from over, and the political fallout, as Trump warns, could be seismic.
Why is Speaker Mike Johnson thinking about shrinking the GOP tax plan?
He’s reportedly looking to trim it down from the original $4.5 trillion to around $4 trillion. The move reflects growing pressure inside the Republican Party to balance big tax cuts with fiscal responsibility.
Where does Trump stand on taxing the rich?
Surprisingly, Trump’s open to it. While most of the GOP want to avoid any tax hikes, Trump recently said he’s okay with raising taxes on ultra-wealthy Americans, especially if it helps fund middle-class tax relief and protect programmes like Medicaid.
Are the 2017 tax cuts going to expire?
Yes, unless Congress steps in, a lot of the 2017 tax cuts are set to sunset in 2025. That means many Americans could see their taxes go up if lawmakers don’t renew or replace those provisions.
Do Republicans support raising taxes on anyone?
As a general rule, no. GOP leaders like Senator John Thune have made it clear: their priority is tax cuts, not tax hikes. The party’s core belief is that lower taxes help drive growth.
What does all this mean for regular working Americans?
If the 2017 cuts expire without a new plan in place, middle-income families could face higher taxes. Trump argues that modest hikes on the rich could ease the blow for the working class and keep safety net programmes funded.