Trump urges Speaker Mike Johnson to raise taxes on the wealthy, adding new wrinkle to massive GOP bill

President Donald Trump urged House Speaker Mike Johnson in a private phone call on Wednesday to incorporate two new proposals into the comprehensive package for his agenda. The proposals included raising the tax rate for top earners and closing the carried interest loophole. This information was shared by a Republican leadership source and two other GOP sources familiar with the call.

Trump’s last-minute requests have added complexity to the ongoing process for Republican lawmakers as they work to secure enough savings for the bill. The bill aims to extend the 2017 tax cuts, increase funding for immigration enforcement and defense, and raise the debt limit.

The White House has been considering increasing the top tax rate for the wealthiest individuals for some time now and is close to finalizing a top-line number for the bill. One of the GOP sources mentioned that Trump is contemplating allowing the tax rate for individuals earning $2.5 million or more annually to revert from 37% to the pre-2017 level of 39.6% to support Medicaid and finance tax cuts for the middle and working classes.

While there have been discussions among Republicans about allowing tax rates for top earners to rise once key parts of the 2017 tax law expire by the end of this year, GOP leaders have traditionally opposed raising taxes on the wealthy.

Trump had previously dismissed the idea of increasing taxes on millionaires, citing potential negative consequences. However, with Trump now pushing for changes and House Republicans facing challenges in making the numbers work for their bill, leadership is reconsidering their options.

A senior House Republican involved in the negotiations confirmed that discussions within the House GOP conference have revived in the past 24 hours regarding the possibility of increasing the top tax rate and closing the carried interest loophole.

The House Ways and Means Committee, responsible for the tax portion of the reconciliation bill, plans to mark up their section next week. However, they are still addressing various complex issues, such as raising the cap on the state and local tax deduction (SALT). House GOP leaders aim to pass the final package on the floor before Memorial Day, setting an ambitious timeline for the process.