39.6%! Trump proposes tax increase on millionaires to balance the budget

Media reports indicate that U.S. President Donald Trump is urging Congress to plan to raise tax rates on some of the wealthiest Americans to compensate for the loss of fiscal revenue caused by other tax cuts.According to sources familiar with the matter, Trump's proposal includes establishing a new top tax rate of 39.6% for individuals with an annual income of at least $2.5 million or families with an annual income of over $5 million.A source told the media that Trump made this request during a call with House Speaker Johnson on Wednesday. He also reiterated his desire to eliminate the "carried interest" tax benefit enjoyed by venture capital and private equity fund managers.However, it is still uncertain whether this proposal will also expand tax cuts for some small business owners, who typically report income through personal tax returns.If Congress approves Trump's proposed 39.6% top tax rate, it would return the top rate to the level before Trump's 2017 tax cuts. Currently, the highest personal income tax rate is 37%.However, Trump has previously wavered on the issue of whether to raise taxes on the wealthy. He has stated that such taxes could prompt the wealthy to move to other countries and could harm Republicans at the polls.The main purpose of this proposal is to alleviate the fiscal pressure brought about by Trump's tax cuts. As Republicans struggle to reach a consensus on whether to cut social security-type spending (such as Medicaid for low-income groups), the pressure they face is increasing, demanding limits on the total cost of the entire wealthy tax increase proposal.Analysts believe that raising taxes on high-income groups would free up more space for Republicans, thereby making Trump's 2017 tax cuts permanent and fulfilling some of his campaign promises, including eliminating taxes on tips and overtime pay.However, raising taxes has always been contrary to Republican traditional ideology. Many senior Republicans have previously expressed resistance to other proposals to increase the tax burden on the wealthy.Senate Finance Committee Chairman and Idaho Republican Senator Mike Crapo stated in a media interview on Thursday that he is "not excited" about this tax increase proposal, but "there are indeed quite a few people in the House and Senate who support it.""If the president clearly expresses support for this proposal, it will be a very important consideration for us."