House Republicans are trying to find the right cocktail of tax reductions and new revenue to pass President Donald Trump’s ‘big, beautiful bill’ by Memorial Day.
No taxes on tips is politically popular and is a key campaign promise of the president, but a coalition of deficit hawks could block that if the GOP fails to find revenue to cover the gap.
That is why the president pushed House Speaker Mike Johnson, R-La., this week to raise taxes on the super rich.
Trump is considering allowing the rate on individuals making $2.5 million or more to increase by 2.6%, from 37% to 39.6%, Fox News Digital reported Thursday.
Such a move would resonate with working-class Americans who elected the president. However, many conservatives have signed pledges for years against raising any taxes.
Trump wrote in a Truth Social post Friday morning, ‘The problem with even a ‘TINY’ tax increase for the RICH, which I and all others would graciously accept in order to help the lower and middle income workers, is that the Radical Left Democrat Lunatics would go around screaming, ‘Read my lips,’ the fabled Quote by George Bush the Elder that is said to have cost him the Election. NO, Ross Perot cost him the Election! In any event, Republicans should probably not do it, but I’m OK if they do!!!’
A deduction for state and local taxes (SALT) also remains unresolved as a group of Republican representatives from New York threaten to vote against the latest proposal. Meantime, a debate rages about health assistance.
House Budget Committee Chairman Jodey Arrington, R-Texas, accused Democrats of trying to ‘paralyze our conference’ and ‘frighten’ Republicans about Medicare and Medicaid cuts. Specifics are key.
‘Until we see what comes out of the committee, I don’t know what’s on and what’s off,’ said Freedom Caucus Chairman Andy Harris, R-Md.