Trump Seeks New 39.6% Tax Bracket on Wealthiest Americans

President Donald Trump is reportedly advocating for a new top tax bracket targeting individuals earning over $2.5 million and couples earning over $5 million, with a proposed tax rate of 39.6%, which would restore the pre-2017 top marginal rate. This marks a significant shift from his previous tax-cut policies and contrasts with mainstream Republican opposition to increasing taxes on the wealthy. Trump has also pushed to close the carried interest loophole, aiming to raise additional revenue to fund broader economic reforms and campaign promises. The proposal has stirred debate within the GOP, complicating ongoing negotiations around a large fiscal package that includes making previous tax cuts permanent and expanding tax relief for workers and seniors. While some Republicans resist the higher taxes, supporters argue the move could free up funds to support Trump's wider economic agenda. Trump communicated these demands directly to House Speaker Mike Johnson during recent discussions, underscoring a strategic pivot in his tax policy stance.