Explainer

Will Republicans Hike Tax on Millionaires to Extend Trump’s Tax Cuts?

Mike Johnson, left, and John Thune at the US Capitol on April 10.Source: Bloomberg
Lock
This article is for subscribers only.

US President Donald Trump has made extending the tax cuts introduced by the 2017 Tax Cuts and Jobs Act a top priority this year. On April 10, after weeks of negotiations, Republicans in Congress agreed on the framework of a bill to make them permanent.

To help cover the impact of the cuts on the federal deficit, Republicans are considering a surprising idea that breaks with decades of conservative orthodoxy: raising federal income taxes for millionaires. Some of the party’s deficit hard liners say that they’re open to a new 40% tax bracket for those earning $1 million or more.