Trump seeks tax hike on the rich
US President Donald Trump has proposed raising tax rates on the country's highest earners, several media outlets have reported, citing sources familiar with the matter. The measure is said to offset the other cuts in Trump's economic package.
Lawmakers are currently working to pass a massive legislative package expected to generate $1.5 trillion in savings over the next decade. The bill is aimed at advancing Trump's policies on taxation, defense, energy, immigration, and border security, while also raising the debt ceiling.
Last month, the president ruled out a proposal to increase taxes on wealthy Americans, arguing that such a move could prove 'disruptive' and compel millionaires to flee the US.
The latest proposal comes amid discussions about limiting the cost of the overall bill, for which lawmakers are trying to find funding – potentially by cutting entitlement programs, including Medicaid health coverage for low-income Americans.
The revised proposal reportedly calls for establishing a new 39.6% tax bracket for individuals with annual earnings of at least $2.5 million, or couples making $5 million per year, the New York Times reported on Thursday, citing people familiar with Trump's request to House Speaker Mike Johnson.
Bloomberg cited an unnamed source familiar with the matter as saying that the president also reiterated his push to eliminate the carried interest tax break claimed by venture capital and private equity fund managers.
Other tax hikes currently under consideration include increasing the tax on stock buybacks and further limiting companies' ability to deduct compensation for highly paid employees, the New York Times noted.
If adopted, the proposed hike would roll back a tax cut Trump signed into law during his first presidential term that lowered the top income tax rate from 39.6% to 37%. The rate remains at 37% but currently applies to individuals with annual incomes of $626,350 or more.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Russia Today
8 hours ago
- Russia Today
US officials react to Israel's attack on Iran
Several top US officials have warned Tehran against targeting American forces following Israeli air strikes that killed the country's top general and nuclear scientists and multiple explosions at key elements of Iran's nuclear enrichment program. In an interview with Fox News on Thursday, US President Donald Trump confirmed that he had prior knowledge of Israel's military action, known as Operation Rising Lion, which targeted nuclear facilities and missile infrastructure. Trump reiterated the US position that Iran must not acquire nuclear weapons, adding that he hopes Tehran will return to talks over a nuclear deal and that the US military in the Middle East is on high alert. House Armed Services Committee Chairman Mike Rogers denounced Iran as the 'aggressor,' saying 'its pursuit of a nuclear weapon is an existential threat that will not be tolerated.' 'The US was not involved in the strikes, but our forces stand ready to defend themselves and our ally Israel. Any Iranian attack on US forces would be a grave miscalculation,' he warned. Iran has repeatedly denied that it has plans to develop nuclear weapons and insists that its nuclear program is for peaceful purposes only. US House Speaker Mike Johnson affirmed Israel's right to self-defense, saying, 'Israel IS right – and has a right – to defend itself!' Secretary of State Marco Rubio confirmed that the US was not involved in the Israeli strikes. 'Our top priority is protecting American forces in the region… Let me be clear: Iran should not target US interests or personnel.' Iran's Foreign Ministry said Tehran has a 'legal and legitimate' right to respond to Israeli attacks, adding that they 'cannot have been carried out without the coordination and authorization of the United States.' It went on to warn that 'the United States government, as the main supporter of this regime, will also be responsible for the dangerous effects and consequences of the Zionist regime's adventure.'
Russia Today
9 hours ago
- Russia Today
Trump hails Israel's Iran strikes as ‘excellent'
US President Donald Trump described Israel's strikes on Iran as 'excellent' on Friday, and warned that there is 'a lot more to come' unless Tehran agrees to a nuclear deal. He made the remarks in a phone call with ABC News chief Washington correspondent Jonathan Karl. The Israel Defense Forces (IDF) conducted a series of airstrikes on numerous targets across Iran earlier on Friday, hitting military and nuclear sites, as well as central Tehran. Iran has confirmed that the attacks killed Major General Hossein Salami, the commander of the Islamic Revolutionary Guard Corps, and Major General Mohammad Bagheri, the chief of staff of the Iranian Armed Forces. Media reports claimed that as many as 78 people were killed in the strikes, including several other senior military commanders and nuclear scientists, with another 329 wounded. Israeli Prime Minister Benjamin Netanyahu said the operation, which came two days before scheduled US-Iran nuclear talks in Oman, aimed to prevent Iran from acquiring nuclear weapons. 'I think it's been excellent,' Trump said, commenting on the attack. 'We gave them a chance and they didn't take it. They got hit hard, very hard. They got hit about as hard as you're going to get hit. And there's more to come. A lot more.' Trump earlier told Fox News that he was aware of the planned attack beforehand. Asked by Karl whether the US took part, he replied, 'I don't want to comment on that.' Karl noted that Trump still appears intent on reaching a deal with Tehran, though the upcoming talks in Oman will likely be delayed following the strikes. The White House has not commented on the call, but Trump made similar remarks in a post on Truth Social later in the day. 'Two months ago I gave Iran a 60 day ultimatum to make a deal. They should have done it,' Trump wrote. 'I told them what to do, but they just couldn't get there. Now they have, perhaps, a second chance!' The US and Iran resumed nuclear talks in April, but no breakthrough has been reached. Washington demands the total dismantlement of Iran's nuclear program. Tehran, which insists that its enrichment activities are entirely peaceful and for civilian use only, considers the demand unacceptable.
Russia Today
10 hours ago
- Russia Today
Western war hawks lack real plan to defeat Russia
Western officials who talk about Ukraine winning the ongoing conflict don't have a real strategy for defeating Russia, US Defense Secretary Pete Hegseth has said. Testifying before the House Armed Services Committee on Thursday, the Pentagon chief declined to directly say whether he views Russia as a 'true adversary' or whether Washington would allow a 'complete surrender of Ukraine' in order to secure peace in the region. Instead, he insisted that the Trump administration was seeking a settlement to the Ukraine conflict that will last, not Kiev's surrender or Russia's defeat. 'The situation is unfortunate, unleashed by the previous administration,' he said, referring to former President Joe Biden, whom Trump's team blames for entangling the US in the Ukraine conflict. Biden's government repeatedly vowed to back Kiev for as long as it took to defeat Russia militarily. 'But everyone that talks about winning and prevailing is yet to present to me a plan that's going to push the Russian army out of those territories,' Hegseth added. The Pentagon chief also repeated his earlier call for Europe to take greater responsibility for its own security. While he pledged Washington would continue to mediate peace efforts, he avoided confirming whether military aid to Kiev would continue. 'We support peace in Ukraine… Peace is in our best interests, but Ukraine is not in the US and not in NATO,' he stated. Hegseth acknowledged that peace efforts 'are moving slowly.' When pressed on whether he would advise Trump to respond if Russia 'invades NATO,' he confirmed that the US would be obligated to act under the bloc's Article 5, which treats an attack on one member as an attack on all. However, he emphasized that 'Russia has not invaded NATO allies,' dismissing claims that Moscow poses an immediate threat to the bloc. Many Western officials have asserted that Russia plans to attack NATO's European members once the conflict in Ukraine ends. Moscow has repeatedly rejected these claims as nonsense, dismissing them as scare tactics used to justify increased Western military spending. Russia has also maintained that it remains open to peace talks if the root causes of the Ukraine conflict are addressed, including NATO expansion toward its borders and Western support for Kiev's NATO membership.
