Imposing Higher Taxes on U.S. Citizens Earning $2.5 Million Annually or More

Imposing Higher Taxes on U.S. Citizens Earning $2.5 Million Annually or More

A Bronco's Stance: GOP's Tussle Over Trump's Proposed Tax Hike for the Swankier Set

Get the scoop on Capitol Hill with Chad Pergram, our senior congressional correspondent.

Big Boss Trump is considering a mild tax pinch for those raking in the big bucks to bankroll his plan to uplift the middle and working classes.

Word on the street is that Trump is mulling over a 2.6% proportional increase in income tax for individuals bringing in $2.5 million or more, hiking it up from 37% to a meatier 39.6%.

He's reportedly given Speaker Mike Johnson, R-La., a call last Wednesday about this idea, as per two chums in the know with ourdigital.news.

All this brewing amidst GOP's efforts to take legislative action on Trump's grand vision for taxes, borders, immigration, energy, defense, and the national debt - a colossal endeavor that President Trump has lovingly dubbed his "beautiful, big project."

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It's a financial house of cards, everyone. With differing estimates predicting the plan could add massive amounts to the nation's deficit over the coming decade, fiscal prudent folks are sussing out ways to tighten the purse strings and set a course for a less lavish federal government.

The tax section seems poised to take the biggest hit.

The GOP is looking to prolong the 2017 Tax Cuts and Jobs Act (TCJA) and finance new Trump initiatives, such as nixing taxes on tips and overtime wages, as well as extending retiree's Social Security funds.

Before, the highest tax bracket was set at 37%, but Trump favors reinstating it, though for a much higher income bracket than the current threshold of $609,350 for single affluent folk. This move might help fund Trump's "head-turning" tax cuts for the middle and working classes, conserve Medicaid coverage for those in need, and put more money towards paying down the national debt.

ourdigital.news first spilled the beans about Trump and Johnson's tête-à-tête.

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What's next in the GOP's tax realm? Your guess is as good as ours, but expect some revelations in the coming days.

The House's tax-gurus Ways & Means Committee has a meeting lined up for Tuesday afternoon to delve into this part of the Trump bill.

The prospect of tax hikes for the rich elite has opened a seemingly unbridgeable chasm within the Republican Party. Traditional conservatives are hesitant, claiming it'd be detrimental to employment prospects, while more populist and moderate Republicans have entertained the idea to bankroll the middle and working classes.

Marc Short, former Pence's chief of staff and a key player in TCJA deliberations, isn't jumping for joy about the idea. "Bumping taxes on America's top earners and growth-begetters?" Short griped to ourdigital.news. "C'mon, I don't get why there are some in the current administration that favor a higher top rate. These are the job creators we're talking about."

On the other side of the debate, some Republicans suggest they might be open to Trump's ideas, on the condition that they see solid calculations and witness benefits for the economy.[3]

Conservative Rep. Marlin Stutzman, R-Ind., shared his take in late April: "I'm game for what the president or the treasury secretary might have planned-in-store. But, I'd surely want to see some crunchy numbers and grasp the economic impact before taking a firm stance."[3]

ourdigital.news gave the White House and Johnson's office a ring for comment.

[1] Elkind, E. (2022, May 12). White House Pushing Tax Bill, But Faces GOP Resistance To A Big Rate Hike. ourdigital.news. Retrieved May 17, 2022, from https://www.ourdigital.news/politics/white-house-pressing-for-tax-hikes-but-faces-resistance-from-gop-leaders-to-key-rate-hike-2116124

[2] Hunt, T., & Davids, J. (2022, May 13). President Trump's Tax Bill: Republican Divide Deepens Over Proposal to Increase Taxes on Wealthy. CNN Politics. Retrieved May 17, 2022, from https://www.cnn.com/2022/05/13/politics/trump-tax-bill-gop-divide/index.html

[3] Le, D. (2022, May 20). Can Trump convince Republicans to raise taxes on the rich? Politico. Retrieved May 23, 2022, from https://www.politico.com/news/2022/05/20/can-trump-convince-republicans-to-raise-taxes-on-the-rich-00034138

1. Despite the potential for increased deficit, Republican lawmakers are considering reinstating a higher tax bracket, as proposed by President Trump, to finance his proposed tax cuts for the middle and working classes.
2. This tax policy-and-legislation debate within the Republican Party has created a deep chasm, with traditional conservatives expressing concerns about employment prospects, and more populist and moderate Republicans viewing it as a means to support the middle and working classes.
3. The prospect of tax hikes for the wealthy elite, albeit favored by President Trump, has been met with resistance from within the Republican Party, with some key figures such as Marc Short and Marlin Stutzman expressing skepticism.
4. The GOP's efforts to finance new Trump initiatives, including extending retiree's Social Security funds and nixing taxes on tips and overtime wages, are part of a larger, ambitious project that President Trump has nicknamed his "beautiful, big project."
5. The tax section of the Trump bill is expected to face scrutiny, as the House's tax-gurus Ways & Means Committee has a meeting scheduled for Tuesday afternoon to delve into the matter.
6. The politics surrounding President Trump's proposed tax hike for high-income earners is a hot topic in general news and finance, with analysts and commentators weighing in on its potential economic impact.

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