Trump Reverses Stance on Millionaire Tax Hike Amid GOP Budget Dispute

President Donald Trump has shown mixed signals regarding a proposed tax hike on millionaires, initially supporting an increase in the top income tax rate from 37% to 39.6% for individuals earning over $2.5 million but later expressing concerns about its political fallout. Trump referenced President George H.W. Bush's 1992 election loss after breaking a 'no new taxes' promise, warning Republicans against the potential backlash despite his personal acceptance of a 'tiny' tax increase. This flip-flopping has contributed to uncertainty among Republicans as they negotiate a major budget bill that includes tax, spending, and policy changes. Some GOP insiders, like former Pence aide Marc Short, argue that raising taxes on the wealthy would hurt job creators and small businesses, opposing the tax hike on principle. The tax increase is being considered as a means to help fund middle- and working-class tax cuts and preserve Medicaid, but it faces resistance from fiscal conservatives wary of any tax increases. Passing the budget bill will require near-unanimous GOP support in both the House and Senate, highlighting the delicate balance of political considerations surrounding the millionaire tax debate.