President Donald Trump is pressuring lawmakers to raise tax rates on some of the richest Americans as part of his signature economic package. The proposal includes the creation of a new tax bracket of 39.6 percent for individuals earning at least 2.5 million dollars or for couples earning 5 million dollars.
Trump has requested this tax increase in a phone call to House Speaker Mike Johnson. In addition, he has expressed his desire to eliminate the tax exemption for accrued interests for hedge fund and private equity managers.
If Congress approves this proposal, the top income tax bracket would reach a level not seen since before Trump's tax cut in 2017, standing at 39.6 percent. Currently, the maximum rate is 37 percent.
Despite opposition from some Republicans to raise taxes on wealthy households, President Trump has shown his willingness to implement this measure to offset other tax cuts. Republicans are under pressure to limit the cost of the bill and find ways to finance it, especially amid difficulties reaching an agreement on cuts to social entitlement programs.
The atypical tax increase of the Republican approach has generated debates and contradictions within the party, with some leaders expressing their disagreement with the proposal. Despite this, Senator Mike Crapo, Chairman of the Senate Finance Committee, has indicated that the President's opinion will be an important factor to consider in the final decision.
