WASHINGTON (Reuters) -U.S. President Donald Trump privately urged House of Representatives Speaker Mike Johnson during a phone call on Wednesday to raise the top tax rate and close the carried interest loophole in upcoming legislation, a person familiar with the conversation said on Thursday.
Trump and Johnson spoke as the Republican-controlled House sought to advance the president’s legislative agenda, which would extend his 2017 Tax Cuts and Jobs Act for businesses and individuals, while eliminating taxes on tip income, overtime pay and Social Security benefits.
Johnson and other top Republicans have resisted the idea of increasing the tax rate on wealthy Americans up until now. Treasury Secretary Scott Bessent told reporters last week that Trump had ruled out the idea.
But the party has remained under pressure from Trump’s populist MAGA supporters to limit tax breaks for wealthy individuals and businesses.
Representative Jason Smith, who chairs the tax-writing House Ways & Means Committee, said in a recent interview that his panel could close tax loopholes that benefit the rich.
(Reporting by Jasper Ward; Editing by Alistair Bell)
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