Trump revives to higher taxes on the rich

President Trump has asked House Speaker Mike Johnson to include a tax increase of the rich Americans in the extensive financial package that legislators put together, two people familiar with the request, who reveal themselves to an idea that many Republicans have rejected.

Mr. Trump wants to create a new top income class for people who earn more than 2.5 million US dollars a year, said people and steered income at 39.6 percent. The president brought Mr. Johnson the idea on Wednesday, said one of the people.

Such a change would attribute one of the tax cuts that Mr. Trump signed in the law in 2017 as a law on tax cuts and jobs. This measure reduced the income rate in the upper bracket from 39.6 percent to 37 percent. This year the top income class begins at $ 626,350 for one person. Mr. Trump tries effectively to restore the previous top interest rate, but at a much higher level of income.

Mr. Trump has been flirting on the rich with a kind of tax increase for weeks and alerted the Republicans, who like to reduce taxes as a general matter. Conservatives campaigned aggressively against the idea, and last month, Mr. Trump explained that a so -called millionaire tax would be “very disturbing”.

But the Republicans are faced with tricky political and budget calculations at the same time They fight in fiscal legislation. In order to compensate for the enormous costs for the tax cuts that you want to contain – a large part of it from the continuation of the 2017 cuts – the Republicans are preparing to reduce the expenditure for Medicaid, a health program for the poor.

Republicans who want to cultivate support for the working class fear the look of reducing the benefits for the poor to cover the costs of tax cuts that offer the rich's biggest advantages. A person trusted with Mr. Trump said that the president believed that a tax increase of the rich would help protect Medicaid.

The Republicans are considering other tax increases with a populist taste, including increasing a tax to a share buyback and further limitation of the company's skills in order to deduct the compensation for highly paid employees. Mr. Trump also wants to end a tax compensation that enables managers of private equity and hedge funds to pay a lower interest rate for a large part of their income.

Mr. Trump's revival of the possibility of increasing income taxes to the rich comes just like the Republicans in the house to publish the first draft of their tax bill. You are already trying to find out how other open problems, including Medicaid cuts, as well as the state and local tax deduction that some Republicans have requested.

Senator Michael Crapo, a Republican from Idaho who heads the financial committee, was careful with the idea of ​​increasing taxes on the rich.

“I'm not looking forward to the proposal at the moment,” he said in an interview with the conservative commentator Hugh Hewitt. “But I have to say that there are a number of people in both the house and in the Senate, and if the president pointed it out, this will be a big factor that we also have to take into account.”