WASHINGTON (Reuters) -U.S. President Donald Trump on Friday cautioned fellow Republican in Congress of the political consequences if they raise taxes on the wealthiest Americans, but added that he would be “OK” if they do increase to top tax rate.
“Republicans should probably not do it, but I’m OK if they do!!!” Trump wrote in a post on his social media platform.
Trump had privately urged U.S. House Speaker Mike Johnson to raise the tax rate, sources told Reuters on Thursday.
The Republican president suggested an increase to 39.6% from 37% for those earning $2.5 million and higher or joint filers earning $5 million, with carve-outs for small businesses, one source said.
Trump on Friday said Democrats would seize on “even a ‘TINY’ tax increase for the ‘RICH,'” citing former Republican President George H.W. Bush, who lost his re-election bid after saying “Read my lips: no new taxes” during his 1988 election campaign.
Republicans in the House and Senate are seeking to extend the 2017 tax cuts enacted during Trump’s first term in the White House that are set to expire this year.
Trump and Republican lawmakers have cited the potential extension as relief for Americans and an economic boost amid Trump’s tariffs on imported goods, and vowed to pass it as part of a larger budget bill this summer.
So far, Johnson and other top Republicans have resisted higher taxes on the wealthy despite pressure from the Trump’s populist MAGA base.
(Reporting by Susan Heavey; Editing by Doina Chiacu)
Comments