Trump Floats Wealth Tax Hike, Warns GOP of Fallout

President Donald Trump has proposed raising the top income tax rate from 37% to 39.6% for individuals earning over $2.5 million and couples over $5 million, partially reversing his 2017 tax cuts for the wealthy. While Trump publicly stated he is 'OK' with the increase, he warned Republicans about possible political fallout, recalling George H.W. Bush's broken 'no new taxes' pledge. The proposal aims to fund middle- and working-class tax cuts and protect Medicaid, but faces internal GOP debate and opposition from some conservatives and business leaders. The suggested hike could generate an estimated $67.3 billion in revenue over the next decade. News of the proposal unsettled financial markets, with the S&P 500 falling and cryptocurrencies like Bitcoin and Ethereum rising. The House Ways and Means Committee is set to finalize the tax bill, but its passage remains uncertain.