Some Republicans are considering a new way to free up space in the budget—raising taxes on the wealthiest Americans.
The idea of raising taxes—which goes against long-held assumptions about the Republican Party’s fiscal policy—appears to be gaining some traction in both the White House and within GOP congressional leadership.
Axios first reported on this shift within the White House in March, quoting an anonymous source who said of the budget process, “If we renew tax cuts for the rich paid for by throwing people off Medicaid, we’re going to get f—king slaughtered.”
The article stated that some in the White House were considering the tax increases as a way to pay for eliminating taxes on tips, a major campaign promise of President Donald Trump.
The unconfirmed reporting appears to have been supported by a recent Semafor article, which claimed Trump said he was open to raising taxes on top earners when he was asked about it by Sen. Lindsey Graham, R-S.C., in a meeting. The article relied on anonymous sources familiar with the meeting.
Within congressional leadership, Republicans are reluctant to go all-in on tax increases, but there are signs they are warming to the idea.
Senate Majority Leader John Thune, R-S.D., for example, told reporters, “It’s one of many, many ideas that are in the swirl right now …. We’ll have those conversations, but obviously, we want to make sure that we get the current rates extended. And we’ll see where it goes.”
Others are not so open to it. Sen. Ron Johnson, R-Wis., said, “I don’t really want to be the party of class warfare,” when asked by The Washington Times.
“I’m not into raising taxes on anybody,” he added.
On the House side, Speaker Mike Johnson, R-La., declined to comment specifically on the proposal, but said, “Generally, we’re trying to reduce taxes around here. … That’s a general principle. But we’ll have to see.”
The idea did not arise randomly. Many within the Republican Party want to make sure that extending and increasing Trump’s first-term 2017 tax cuts does not lead to ballooning deficits.
Rep. Andy Harris, R-Md., who chairs the conservative House Freedom Caucus, has been skeptical of the Senate budget plan, and has been calling for greater deficit cuts.
The Maryland Republican said in a recent interview that creating a new tax bracket of about 40% for top earners would be a “reasonable way to pay for” the fulfillment of Trump’s campaign promises, such as ending taxes on tips.
