Trump floats taxes on the rich who can pay for its comprehensive tax and expenditure pace packages

Cnn
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President Donald Trump said that he was open to wealthy Americans for hiking taxes to pay for the tax and spending cuts of the Republicans, but the idea remains hot among the GOP legislators on Capitol Hill.

In a social post on Friday morning, Trump actually said that he would also take a “tiny” tax increase for the rich, while he recognized that it could bring in political risks for republicans. House's GOP legislators have difficulty finding outputs of 1.5 trillion US dollars in order to compensate for trillion dollars in tax cuts.

“The problem with a” tiny “increase in tax for the rich that I and everyone else would graciously accept to help the workers of the lower and medium -sized incomes are that the radical lunatics of the left democrat would go around screaming,” read my lips. “Trump wrote.

“In any case, the Republicans shouldn't do it, but I'm okay if they do it !!!” He continued.

Trump also mentioned the possibility of running tax cuts from top earners -on individuals who earn at least 2.5 million US dollars or couples who earn at least 5 million US dollars -in a call with the spokesman for House, Mike Johnson, on Wednesday a republican source familiar with the matter said with the matter of CNN by Dana Bash.

The White House made the suggestion for congress with the idea that it would not only help to achieve urgently needed offsets, but could also help to wipe off the argumentation of the Democrats about tax cuts for the rich, the source said.

This is not the first time that Trump pointed out that he supports the increase in taxes to the rich, even though he repeatedly promised to reduce their taxes over the past year. The president recently told Time Magazine: “I love the concept” when he was asked about a proposal to raise taxes for those who earn more than 1 million US dollars a year.

However, the idea is not warmly accepted under the house of the house and it is far from making it into the last “a big beautiful” law of the President, which aims to permanently design the comprehensive tax cuts of Trump in 2017 and to include the president's campaign to eliminate taxes for tips and certain other income.

Only the individual tax regulations for 2017 that expire at the end of this year could cost more than 4 trillion dollars. Republican legislators are also broken how deeply they would have to reduce expenses – also for medicaid and food brands – to achieve their goals.

In the manner of the house, the members discussed two ideas. One of them exists to run out the tax benefits for the richest Americans and to return their top income tax rate to 39.6% – as was before Trump's tax overhaul from 2017 – of the current 37%. However, this has drawn some criticism because some Republicans fear that the owners could have an impact on small business owners.

However, it could hit around 1.5 million households and reduce around $ 409 billion of costs and significantly restrict potential economic growth if the tax cuts are permanently designed, according to the tax foundation, a right-wing thinking factory.

Another idea is to create a brand new tax class for the rich. The proposal, limited to the extent, could help to become costly tax regulations such as the restoration of the state and local tax deduction – known as Salt – to another flashpoint in the congress tax debate.

According to the Tax Foundation, the new tax class would bring in about 59.3 billion dollars over a decade. And it would affect between 150,000 and 200,000 households and a much lower damping on the economic growth potential of the package.

The collection of a tax rate with higher incomes for the richest Americans would collect less money, since a large part of the income of this group comes from dividends and capital gains that are taxed at lower interest rates, said Garrett Watson, director of political analysis of the foundation. There is also much less of them.

One of the considerations for the Republicans is the goal of such a provision – to limit how much of the benefit reaches the rich or collects more money to compensate for other tax cuts, said Watson.

Despite Trump's obvious openness to increase taxes on the rich, his business advisor said on Friday that the president was not a strong lawyer for the idea.

When asked whether Trump is considering serious to burden the rich for his budget bill, National Business Director Kevin Hassett: “The president is not a strong supporter of it, but he is a strong advocate of many things like no tax on tips, no taxes for overtime and good treatment for auto editing.”

“He quoted his priorities and understands that the final legislation in the end comprises some priorities of members of the Senate house. This is how the democratic process works, and so it really works in this conversation.”

When asked how the White House expects to pay the bill, given a number of its priorities given, which are expensive, Hassett argued that the congress has already identified clear areas for cuts without too detailed what they are and whether they are available.

“Well, the household rules in the house and the Senate are very clearly identified, the spending cuts and so on, and they do not contain dynamic scores,” he told CNN. “And so with the expenses we reach, and the dynamic score of the tax invoice, we are very confident that we will reduce the deficit that celebrates the bond markets.”

The chairman of House Ways and Means, Jason Smith, is expected to meet Trump in the White House on Friday, and Hassett previously told CNBC that he would expect Smith to outline the house of the house for the tax bill at some point.

Hassett met almost weekly with Johnson, Minister of Finance Scott Bessent and others about the Budget of the Congress. At the beginning of this week, the group met in the Roosevelt Room of the White House.

This story has been updated with additional details.

Alejandra Jaramillo from CNN contributed to this report.