Trump Floats Tiny Tax Increase on Rich Amid GOP Budget Battle

Former President Donald Trump has expressed openness to a "tiny" tax increase on the ultrawealthy as a means to fund tax breaks for middle- and working-class Americans and to offset the cost of extending key provisions of the 2017 Tax Cuts and Jobs Act. Despite this shift, Trump cautions that Republican lawmakers "probably shouldn’t do it" due to potential political backlash from Democrats, referencing the historical context of President George H.W. Bush's 1992 election loss amid tax hike controversies. Trump’s stance has stirred unease within the GOP, as House Republicans are working to finalize a tax package that includes eliminating taxes on tips and overtime pay, extending corporate tax cuts, and aims to avoid increasing the federal deficit. Speaker Mike Johnson and other GOP leaders have expressed strong opposition to any tax increases, complicating efforts to secure near-unanimous Republican support in the narrowly held House majority. Trump’s comments highlight the tension between maintaining fiscal conservatism and addressing the budgetary needs through potential tax reforms. He also emphasized that the 1992 election loss of George H.W. Bush was due to Ross Perot’s independent candidacy rather than the tax issue itself.