Trump supports tax increase for the wealthy but suggests GOP “might want to avoid it.”
President Donald Trump on Friday tepidly supported the notion of raising taxes on the wealthiest Americans, while openly grappling with the political implications of such a decision and suggesting that his fellow Republicans should “probably” oppose it. Trump’s public deliberation on social media followed his conversation with House Speaker Mike Johnson regarding the inclusion of a tax increase for the highest earners in the major tax and spending bill that the GOP aims to pass this year.
This indicates that Trump—whose agenda heavily emphasizes what he calls the “one, big, beautiful bill” moving through a divided Congress—is willing to challenge traditional Republican views on taxing the wealthy. In a Truth Social post on Friday morning, he stated that he “and all others” would “graciously” accept “even a ‘TINY’ tax increase for the RICH” for the benefit of “lower and middle income workers.” However, he expressed concern about the potential backlash, writing, “the problem” with that idea is that “the Radical Left Democrat Lunatics would go around screaming, ‘Read my lips,’ a reference to George H.W. Bush’s notorious campaign promise that ultimately cost him the election.”
Trump asserted, “NO, Ross Perot cost him the Election!” adding, “In any event, Republicans should probably not do it, but I’m OK if they do!!!” He was referring to then-candidate George H.W. Bush’s 1988 campaign promise not to raise taxes, which became a significant point of contention during his presidency and was perceived as a contributing factor to his defeat in the 1992 election.
When later asked for clarification on whether he supports the idea of increasing top tax rates, White House Press Secretary Karoline Leavitt stated that Trump desires “the largest tax cuts in history.” She noted, “As for the policy proposal you’re discussing, the president has mentioned he personally wouldn’t mind paying a little more to help the poor and the middle class and the working class in this country. I think, frankly, that’s a very honorable position. But again, these negotiations are ongoing on Capitol Hill, and the president will weigh in when he feels necessary.”
Trump’s post could escalate the pressures on GOP leaders, who are already facing challenges in creating a bill that aligns with his demands for significant tax cuts without excessively increasing the deficit, which might deter fiscal conservatives from supporting it. Throughout his campaign and presidency, Trump pledged to eliminate taxes on overtime pay, service workers’ tips, and on Social Security for seniors, while also extending the corporate tax cuts enacted during his first term in 2017.
Rep. Jason Smith, R-Mo., chairman of the tax-focused House Ways and Means Committee, is scheduled to meet with Trump. On Thursday, Johnson informed Republicans that they would not be able to fund the previously targeted $4.5 trillion in tax cuts. During a phone call with Johnson on Wednesday, Trump suggested considering a higher tax bracket for top earners but with exceptions for small businesses. He also proposed closing the “carried interest loophole,” a provision in the tax code often utilized by Wall Street investors.
