The White House is weighing whether to support raising taxes on Americans earning more than $1 million per year as part of the 2025 tax legislation. However, the concept faces significant opposition from longtime allies of President Donald Trump and many congressional Republicans.
According to two administration officials and three other people briefed on the matter, Treasury Secretary Scott Bessent has expressed openness to a range of ideas, including raising taxes on high-income earners. The proposal would impact those earning more than $5 million per year.
The GOP’s 2017 tax law has added over $4 trillion in new tax cuts as the national debt surges. Lawmakers are exploring ways to extend the law while addressing concerns about funding. Some Trump allies, including Steve Bannon and Newt Gingrich, have advocated for higher taxes on the rich, citing the need to address economic inequality.
However, critics argue that even a higher tax on millionaire income will not significantly reduce wealth disparities. The wealthiest Americans typically benefit from increases in stock values and unrealized paper gains, making it challenging to impact their overall wealth.
The proposal has sparked debate within the Republican Party, with some arguing it’s unlikely to pass due to lack of support. Doug Holtz-Eakin, a senior fellow at the American Enterprise Institute, estimates that allowing the top tax rate to return to 39.6 percent would raise approximately $400 billion over the next decade.
The Treasury Department claims the administration is considering various options and remains committed to executing President Trump’s policy agenda, which includes making his historic Tax Cuts and Jobs Act permanent.
Source: https://www.washingtonpost.com/business/2025/04/22/trump-millionaire-tax-rich-gop-vance