GOP talks on millionaire tax hike come from party's populist streak, strategists say
An aversion to tax increases has long been one of the Republican Party's core pillars, but tradition was upended in recent weeks as discussions of a potential new millionaires' tax hike hit Capitol Hill.
It's baffled some members of the GOP's old guard, though Republican operatives who spoke with Fox News Digital were less surprised. They said those conversations were largely ushered in by the party's growing populist wing.
"I'm not sure if I'm surprised anymore, because the party has changed so much in just a short period of time. But it is noteworthy," longtime GOP strategist Doug Heye told Fox News Digital.
Heye recalled his time as a senior House leadership aide in 2012, when a Republican proposal for a uniform tax rate for people making under $1 million per year was blown up "by a rebellion within our own ranks" over raising taxes.
"It all exploded in our faces," he said. "And now this is what more and more of those Republicans who rejected the idea in 2012 want to do."
Sources told Fox News Digital this month that the White House was socializing a plan among Republicans to create a new 40% tax bracket for people making more than $1 million.
Various reported plans floated among House Republicans included raising taxes on the ultra-wealthy to rates between 38% and 40%.
Former House Speaker Newt Gingrich has been seeking to quash that this week, even posting a purported message from President Donald Trump himself on X that said, "If you can do without it, you're probably better off trying to do so."
Fox News Digital reached out to the White House on Wednesday morning for comment on Gingrich's note, including the context of the message and why Trump described that he would "love" increasing taxes, but did not receive a reply.
The top income tax rate is currently about 37% on $609,351 in earnings for a single person or $731,201 for married couples. It was lowered from just over 39% by Trump's 2017 Tax Cuts and Jobs Act.
"The politics are good for raising taxes on wealthy Americans," said John Feehery, a partner at EFB Advocacy and veteran of House GOP leadership staff. "The downside is it does have an impact on economic growth. So if you want the cheap political score, that's the way to go. On the other hand, if you want a solid economy where people are working, you want to be careful on how you do that."
Asked if the discussions caught him off guard, Feehery said, "I'm not surprised by it because Trump is such a populist, and he has a lot of folks who are populist."
He signaled the appeal of higher taxes for the wealthy was born from that shift.
"If you look at the constituencies, the biggest constituency, it's really interesting because the parties have kind of changed," he continued. "It used to be the country-club Republicans and working-class Democrats; now it's working-class Republicans and country-club Democrats."
Heye said when asked about the increase in tax hike talks, "I think it's a mixture of Trump and populism."
"Raising taxes used to be an anathema to Republicans, and you know, when George Bush did it after saying 'Read my lips,' that was the beginning of the end of his presidency," Heye said. "That world just doesn't exist anymore."
House GOP leaders have publicly made clear that they're opposed to raising taxes on anyone. But Republicans must find a way to pass Trump's budget, including new tax policies eliminating duties on tipped and overtime wages, while meeting conservatives' demand to cut at least $1.5 trillion in government spending to make up for it.
House Freedom Caucus Chair Andy Harris, R-Md., previously signaled that he is open to the idea if spending cuts can't be reached by other means.
"What I'd like to do is, I'd actually like to find spending reductions elsewhere in the budget, but if we can't get enough spending reductions, we're going to have to pay for our tax cuts," Harris told "Mornings with Maria" on FOX Business last week.
"Before the Tax Cuts and Jobs Act, the highest tax bracket was 39.6%; it was less than $1 million. Ideally, what we could do – again, if we can't find spending reductions – we say, 'OK, let's restore that higher bracket, let's set it at maybe $2 million income and above' to help pay for the rest of the president's agenda."
Rep. Dan Meuser, R-Pa., similarly floated raising the top tax bracket to 38.6%.
He later told Fox News Digital in a statement, "I believe we must help the president deliver on his promise of a tax and regulatory plan that supports pro-American economic and manufacturing growth, and delivers for the vast majority of Americans – while creating savings and promoting fiscal responsibility. Any adjustments in taxes to accomplish these goals should be considered."
Both Meuser and Harris declined to provide more comment for this story.
Former Vice President Mike Pence, who refers to the 2017 tax cuts as the "Trump-Pence tax cuts," last week urged House Republicans to stand firm against raising taxes on the country's top earners and to make the 2017 tax cuts permanent.
One House GOP lawmaker told Fox News Digital last week that reaction among their colleagues to possible tax hikes was "mixed."
But a former Republican member was skeptical on Wednesday.
"Raising taxes is a short-term high, which ultimately does more harm than good," the former House Republican said. "This strategy is contrary to conservative values."
Meanwhile, Marc Goldwein, senior policy director at the nonpartisan Committee for a Responsible Federal Budget, said it was "healthy" that lawmakers are entertaining fiscal ideas outside their party norms.
He was wary about the push for a tax hike, however.
"I'm not a fan of doing things that look fiscally good at the same time that you're doing things that actually are fiscally bad … on top of that, I don't think raising tax rates is the best way to raise revenue," Goldwein said. "But with those two things said, I think it is very healthy move that the GOP kind of is talking about that rates actually can go in both directions."
Fox News Digital reached out to Gingrich for an interview for this story but did not receive a response.
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23 minutes ago
- CBS News
Downtown L.A. curfew goes into effect after California Gov. Gavin Newsom addresses ICE protests
California Gov. Gavin Newsom delivered a statewide address on Tuesday in the wake of immigration operations that sparked days of protest in Los Angeles and the deployment of hundreds of National Guard and U.S. Marines troops to the area by President Trump. "Trump, without consulting California leaders, commandeered 2,000 of our state's National Guard members to deploy on our streets illegally and for no reason," Newsom said. "This brazen abuse of power by a sitting president enflamed a combustible situation, putting our people, our officers and even our National Guard at risk." The speech came on the heels of Mayor Karen Bass' decision to implement a curfew in downtown Los Angeles after five nights of unrest in the city center, and an emergency motion for a temporary restraining order filed by the state in its lawsuit to block further deployment of troops. That curfew resulted in dozens of arrests on Tuesday, with law enforcement swarming the impacted area as soon as it went into effect. Sporadic arrests followed. It was unclear how many were made in all. Since Friday, when the first operations took place in several downtown locations, protesters have taken to the streets to denounce the arrest of dozens of people. In some instances, protests have escalated into violent clashes that left an aftermath of destruction, including graffiti, looting, vandalism and debris. The next night, Mr. Trump declared that the National Guard would be deployed to Los Angeles to help quell the turmoil, despite opposition from California politicians who said it was largely unnecessary. That order was then followed by the deployment of 2,000 more National Guard troops and 700 U.S. Marines to the area as the protests continued, something Newsom called "fanning the flames even harder." "The President, he did it on purpose. As the news spread throughout L.A., anxiety for family and friends ramped up and protests started again. By night, several dozen lawbreakers became violent and destructive, they vandalized property, they tried to assault police officers," Newsom said. "This situation was winding down and was concentrated in just a few square blocks downtown. But that, that's not what Donald Trump wanted." "What we're witnessing is not law enforcement — it's authoritarianism. What Donald Trump wants most is your fealty, your silence, to be complicit in this moment," Newsom said. "Do not give into him." Los Angeles police and protestors face off in Downtown L.A. on Tuesday, June 10, 2025 in Los Angeles, CA. Jason Armond Curfew issued During an evening press conference, Bass said that since demonstrations have continued to escalate into violence, resulting in dozens of arrests and more than 20 businesses looted, she would impose a curfew. "The curfew will be in place tonight from 8 p.m. to 6 a.m.," she said. "We certainly expect for it to last for several days." It runs for one-square mile in the downtown area from the 5 Freeway to the 110 Freeway and from the 10 Freeway to where the 110 Freeway and 5 Freeway merge. "The city of Los Angeles is a massive area, 502 square miles," Bass said. "The area of downtown, where the curfew will take place, is one square mile ... Some of the imagery of the protest, of the violence gives the appearance as though this is a citywide crisis and it is not." Protesters gather in front of California National Guard soldiers and LAPD officers guarding the Edward R. Roybal Federal building as protests continue in Los Angeles on June 10, 2025 in Los Angeles, California. / Getty Images Demonstrations continue Tuesday Dozens gathered once again Tuesday, but police were quick to close in on the growing crowd near the Metropolitan Detention Center. With the CBS Los Angeles helicopter overhead, multiple people were seen being detained and loaded onto buses by officers. At around 4 p.m. a small crowd moved towards the 101 Freeway, briefly entering southbound lanes before they were met by the California Highway Patrol. Some officers stopped traffic as others formed a skirmish line to prevent the pedestrians from moving further into the road. Despite law enforcement blocking offramps and onramps for the thoroughfare, the crowd was able to gain entry through a hole that had been cut in a chainlink fence. On Sunday, hundreds of demonstrators flooded the same stretch of freeway, where they clashed with CHP officers. At around 7:30 p.m. CBS News Los Angeles reporters said that tensions again escalated outside of the Edward R. Roybal Federal Building, where people in the crowd began hurling projectiles towards a line of National Guard troops stationed out front. When the curfew went active 30 minutes later, dozens of LAPD officers arrived outside of the building, which prompted much of the crowd to begin leaving the area. Still, dozens of people attempted to hang around, resulting in their arrests. It's unclear exactly how many people were taken into custody. With the CBS News helicopter overhead, a group of dozens were seen still moving through the area, some stopping to tag the side of buildings and Metro buses. By 11 p.m. most of the people who had previously gathered downtown appeared to have left the area. A crowd of protesters outside of the Edward R. Roybal Federal Building in downtown Los Angeles on June 10, 2025. KCAL News How it started The protests began Friday night after several immigration raids took place in the Westlake District, downtown and South LA. The CBS News Los Angeles helicopter flew over the locations where crowds quickly formed, and protesters attempted to prevent federal agents from placing individuals into vans. One of the 45 people arrested that day was local union leader David Huerta. The protests that took place over the weekend were declared unlawful assemblies and people were ordered to disperse and clear the area. In each case there were small pockets of the demonstrations that turned chaotic, which included hundreds of people converging on the 101 Freeway to block traffic on Sunday afternoon. That same day, several Waymo vehicles were torched to the ground by one group of people. The day prior, hundreds of demonstrators clashed with law enforcement in Paramount and Compton. Reporters on the ground saw as law enforcement and troops dressed in riot gear attempted to clear crowds by using tear gas, beanbag rounds and flash bangs into crowds to try and disperse people. Department of Homeland Security Secretary Kristi Noem posted on X that people who "lay a hand" on law enforcement officers will be prosecuted to the full extent of the law. So far, nearly 400 people have been arrested in the series of demonstrations, Newsom said on Tuesday. Protesters gathered in downtown Los Angeles on June 10, 2025, marking the fifth consecutive day of anti-ICE protests. KCAL News National Guard and military in Los Angeles The Marines began arriving in the LA area on Tuesday morning, a defense official said, joining the thousands of National Guard troops already in the area to respond to the protests. Acting Defense Department comptroller Bryn MacDonnell testified before the House Appropriations Subcommittee on Defense and said the deployment of the National Guard will cost about $134 million. On Tuesday, California Attorney General Rob Bonta asked a federal judge to provide a temporary restraining order to stop Mr. Trump, Defense Secretary Pete Hegseth and the U.S. Department of Defense from using the military and the National Guard to patrol the region and protect federal officers and facilities. The day before Bonta filed a lawsuit against the Trump administration, arguing the orders are unlawful and exceed the federal government's authority under the Tenth Amendment. "President Trump's order calling federalized National Guard troops into Los Angeles — over the objections of the Governor and local law enforcement — is unnecessary and counterproductive. It's also deeply unfair to the members of the National Guard who are hard at work every day protecting our state, preparing for and responding to emergencies, and training so that, if called, they can fight our nation's wars," Bonta said. Bass blamed the unrest in LA on the federal government's involvement, saying that before immigration enforcement actions last week, the city was "peaceful." During a speech at Fort Bragg on Tuesday, Mr. Trump called the protests "a full-blown assault on peace, on public order and a national sovereignty. He said that if it weren't for his calling in the National Guard, L.A. would be "burning to the ground right now" and that the majority of the demonstrations were allegedly "carried out by rioters bearing foreign flags with the aim of continuing a foreign invasion of our country" and that he would "liberate" L.A. Democratic California Sen. Alex Padilla spoke with CBS News' Major Garrett on Tuesday regarding the actions of immigration enforcement and the several days of protests. He said that while the majority of the demonstrations have been peaceful, "the folks that show up after dark and are involved with the looting and the vandalism ... we denounce that." He called the ongoing situation a "crisis of Donald Trump's making." "The increasingly aggressive and cruel tactics of the immigration enforcement is what's prompting the response of people who are passionate about speaking up for our fundamental rights and due process, because the enforcement operations have gone far beyond just the violent criminals or the dangerous criminals that Donald Trump has promised," Padilla said. "It's raking in people who are otherwise innocent, hardworking women and men, children." He also denounced the deployment of military troops to the area. "The National Guard, to your point, it's not only not necessary here, it's counterproductive. Their presence is what's causing people to feel a little bit more on edge," he said. "As things have been quieting down a little bit more each day, now he's capturing that, not with a deescalation, but now potentially sending the Marines. Donald Trump is escalating the situation." Padilla, who grew up in the Pacoima area, served as president of the Los Angeles City Council and represented the San Fernando Valley in the state Senatre, says that the matter is "personal to me." "Los Angeles is my home. I am the proud son of immigrants from Mexico who worked so hard, who sacrificed so much to live their American dream. That's what the immigrant community is fighting for," he said. Protests take place across California Demonstrations have also taken place in cities across California in response to the events in Los Angeles. On Monday, a crowd of over 100 people gathered in Santa Ana outside the complex of federal buildings in the downtown area, some of which threw fireworks towards law enforcement officials who used crowd dispersal methods like smoke-filled canisters and pepper balls in return. The situation was much more peaceful on Tuesday, with a smaller group of people protesting in the same area without incident. "When a peaceful demonstration escalates into rocks, bottles, mortars, and fireworks being used against public service personnel, and property is destroyed, it is no longer a lawful assembly. It is a violation of the law," said a statement from Santa Ana Police Chief Robert Rodriguez. "We will not stand by while our City is put at risk. Santa Ana Police officers, along with our mutual aid partners, are actively working to restore order. We urge everyone to go home." Tensions grew in San Francisco Monday night when police said two small groups of individuals committed vandalism and other criminal acts. Police said multiple people were arrested and detained after refusing to comply.
23 minutes ago
US Rep. LaMonica McIver indicted on federal charges from skirmish at New Jersey immigration center
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Asian shares climb after China and the US say they have a framework for seeking a trade deal
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