Trump Urges Speaker Johnson to Raise Top Tax Rate on Wealthy

President Donald Trump privately urged House Speaker Mike Johnson to raise the top tax rate on the wealthiest Americans and close the carried interest loophole as part of a larger Republican tax package. This marks a notable shift as GOP leaders have traditionally resisted tax hikes on high earners, but Trump’s intervention comes amid struggles to find sufficient savings for the bill, which aims to extend the 2017 tax cuts and fund immigration enforcement and defense. Reports indicate Trump is considering allowing the top rate to revert from 37% to 39.6% for individuals making $2.5 million or more to help offset middle-class tax cuts and protect Medicaid. Trump’s push reflects pressure from his populist base to limit tax breaks for the wealthy, despite previous denials of raising top rates from Treasury officials. The proposal to raise taxes on the richest Americans is seen as a potential strategy to provide fiscal breathing room for other priorities and blunt Democratic criticism. Closing the carried interest loophole, which benefits private equity and investment fund managers, is also a key part of his requested changes.