Trump Proposed Millionaire Tax Hike Spurs GOP Debate

President Trump has introduced a contentious proposal to raise taxes on Americans earning over $2.5 million, potentially reversing the post-2017 top tax rate from 37% back to 39.6%, aiming to fund middle- and working-class tax cuts and Medicaid protection. This suggestion has sparked significant debate within the Republican Party, with many lawmakers and tax advocates opposing the move due to concerns it could hurt small business owners and contradict longstanding GOP tax principles. Senate Majority Leader John Thune has publicly rejected tax increases but remains open to discussions, acknowledging Trump’s unconventional approach and emphasis on benefiting working Americans. Despite initial support, Trump later expressed ambivalence about the millionaire tax hike, reflecting fears of political backlash similar to the Bush-era 'No new taxes' controversy. Meanwhile, the GOP tax bill set for congressional consideration plans to extend Trump-era tax cuts and increase the standard deduction to benefit taxpayers starting in 2025, while efforts continue to finalize various business tax provisions. The evolving debate signals a potential shift in Republican tax policy, balancing traditional opposition to tax hikes against strategic political and revenue considerations.