Trump’s ‘Big, Beautiful Bill’ Faces GOP Rift Over Millionaire Taxes/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ As Republicans draft Trump’s massive tax and spending bill, debate intensifies over whether to raise taxes on millionaires. Populist conservatives are pushing for a top-rate hike, while traditional Republicans strongly resist any tax increases. Trump himself has sent mixed signals on the idea.
Trump Tax Plan Sparks GOP Rift Over Millionaire Taxes: Quick Looks
- Tax Cut Expansion Underway: Congress is building a multitrillion-dollar tax and spending bill at Trump’s request.
- Top Rate in Focus: The bill aims to extend 2017 tax cuts while discussing tweaks, including a potential top-rate increase.
- Populist Push for Wealth Tax: Influential conservatives like Steve Bannon support raising taxes on $1M+ earners.
- Establishment Pushback: Figures like Newt Gingrich and Grover Norquist warn against violating anti-tax GOP orthodoxy.
- Trump Sends Mixed Messages: While calling the idea “disruptive,” Trump also says he “loves the concept” of a wealth tax.
- Democrats Opposed: They plan to reject the bill over anticipated deep cuts to federal programs.
Trump’s ‘Big, Beautiful Bill’ Faces GOP Rift Over Millionaire Taxes
Deep Look
WASHINGTON (AP) — As Republicans race to draft what President Donald Trump calls his “big, beautiful bill“ — a sweeping tax cut and budget-slashing package — one question is stirring intense debate within the party: Should millionaires pay more?
Trump has sent mixed signals. While he has said he “loves the idea” of raising taxes on the wealthy, he’s also dismissed it as “disruptive,” warning it could drive rich Americans overseas.
“We don’t need to be the ‘READ MY LIPS’ gang who lost an election,” he quipped this week, referencing George H.W. Bush’s infamous broken tax promise.
Yet the idea continues to gain traction among populist conservatives, who say a tax on millionaires could both generate revenue and boost their appeal to working-class voters. Former Trump adviser Steve Bannon is one of the loudest advocates, calling it a “necessary correction” to support middle-class priorities while reducing national debt.
“You have to go to an alternative,” Bannon said at the Semafor World Economy Summit. “That alternative is budget cuts — and tax increases on the wealthy.”
His stance clashes with traditional Republican leaders like Newt Gingrich and anti-tax activist Grover Norquist, who have condemned the idea as a betrayal of core GOP values.
“Madness,” Gingrich told Fox News. “It would be a disaster.”
The Numbers
The top federal income tax rate currently stands at 37% for single filers earning over $611,000 and married couples earning over $767,000. Without congressional action, that rate will revert to 39.6% — the pre-2017 level — at the end of the year.
Raising the top rate slightly higher — say to 40% for those earning over $1 million — could bring in $300 billion over 10 years, according to analysts. But that’s still only a fraction of the over $5 trillion Republicans want to spend on extending Trump-era tax cuts and adding new tax breaks, such as:
- No taxes on tips
- Tax-free Social Security income
- Exemptions on overtime pay
Political Stakes
House Speaker Mike Johnson has tried to steer the conversation away from any tax hikes. “I’m not in favor of raising the tax rates,” he told Fox News, reaffirming the GOP’s traditional stance.
Still, as Republicans try to fund their ambitious package and avoid deep cuts to popular programs like Medicaid and food stamps, some are signaling openness to alternative funding mechanisms — like closing loopholes or marginal rate increases.
The package is being drafted along with $1.5 trillion in spending cuts, though it’s unclear where all those cuts will fall. Democrats, meanwhile, are united in opposition, criticizing the proposal for its expected impact on social safety net programs and its skew toward upper-income earners.
Because of their narrow majorities, Republicans will need to maintain unified support in both the House and Senate to pass the package without Democratic votes.
Trump’s Balancing Act
Trump, who’s long styled himself a populist outsider, is clearly navigating internal tensions. In a note to Gingrich this week, Trump acknowledged that a tax hike on millionaires “might be used against us.” But in an interview with Time Magazine, he added: “I actually love the concept, but I don’t want it to be used against me politically.”
That tension reflects the new Republican identity crisis — a tug-of-war between the party’s anti-tax establishment and its blue-collar, populist resurgence, powered by Trump’s base.
“It’s a question of priorities,” said a senior Republican aide. “Do we want to be the party that protects billionaires, or the one that helps working Americans?”
As Republicans continue drafting the package through the summer, the debate over taxing the wealthy will remain a political flashpoint — not just between the two parties, but within the GOP itself.
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