US President Donald Trump points out as he attended the annual Lunch Friends of Ireland organized by the US President of the House of Representatives, Mike Johnson (R-La) at the American Capitol in Washington, DC, United States, March 12, 2025.
Evelyn Hockstein | Reuters
While the Republicans fight to finance their huge Expenditure and tax packagePresident Donald Trump Considering a possible tax hike for the highest wages.
The idea, which lacks republican support, could return the higher federal tax rate At the 2017 levels for some of the richest Americans.
During a phone call Thursday, NBC reported, Trump pressed the president of the room Mike Johnson, R-la, to Increase the higher tax rate on the richest Americans and close the so-called Exhaust of interest. The proposal would return the rate of 37% to 39.6% for people earning 2.5 million dollars or more per year, to help preserve Medicaid and tax discounts for everyday Americans.
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Trump Friday Opening expressed upwards taxes on the richest Americans of a Social truth Post, noting that he “would graciously accept” the increase in tax to “help workers with lower and intermediate income”.
“The Republicans should probably not do it, but I am fine if they do it !!!” He wrote.
Promulgated by Trump, the law on tax reductions and jobs, or TCJA, of 2017 created Tax reductions For individuals and businesses. Most will be sunset after 2025 without extension of the congress.
TCJA temporarily lowered the highest tax rate from 39.6% to 37%. For 2025, the rate of 37% comes in place for unique declarants once taxable income exceeds $ 626,350.
How Trump's idea compares to historic rates
If signed, a highest 39.6% tax rate would make taxpayers rich at the pre-TCJA levels from 2013 to 2017. Before that, the The higher rate was 35% For most of the early 2000s, according to data collected by the Fax Policy Center. The highest rate was 94% from 1944 to 1945.
However, this data does not reflect the amount of income subject to higher rates or to the value of standard and detailed deductions during these periods, noted the organization.
Trump's tax package faces a “mathematics problem”
With the control of the congress, the Republicans can adopt legislation through a process known as “reconciliation”, which can bypass the Senate flibustier with a simple majority.
However, there is still a disagreement on what should be included in the bill of several thieves and how to finance it.
The legislators face “a fairly simple mathematics problem”, with many proposals that do not cover the cost, president of the Yale budget laboratory and Natasha Sarin law professor told CNBC “Squawk Box” Friday.
“We are not getting closer to the type of increase in income we need,” she said.
