President Donald Trump on Friday said he would be "OK" with raising taxes on the wealthiest Americans but cautioned fellow Republicans that the political risks may outweigh the benefits. The remarks, posted to his Truth Social platform, came as House Republicans work to finalize a sweeping tax and spending package, with Trump playing an increasingly hands-on role in shaping its contents.
"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," Trump wrote, "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!!!"
The comment referred to former President George H.W. Bush's 1988 pledge not to raise taxes-a promise that, when broken, became a damaging political liability. Trump's post, marked by conflicting signals, reflects a tension between populist messaging and traditional Republican resistance to tax hikes.
Sources familiar with internal discussions said Trump had urged House Speaker Mike Johnson, R-La., to consider raising the top marginal income tax rate from 37% to 39.6% for individuals earning over $2.5 million and couples earning more than $5 million, with exemptions for small businesses. Johnson has yet to endorse the proposal publicly.
The idea of including a higher top bracket coincides with Trump's broader push for what he calls a "one, big, beautiful bill," which also aims to eliminate taxes on tips, overtime pay, and Social Security benefits. The bill would extend the 2017 tax cuts enacted during Trump's first term, many of which are set to expire this year.
On Wednesday, Trump proposed closing the carried interest loophole, a tax provision benefiting private equity and hedge fund managers. The suggestion was part of a phone call with Johnson, according to NBC News.
House Ways and Means Committee Chairman Jason Smith, R-Mo., is expected to meet with Trump to continue discussions. According to Politico, Johnson told Republicans Thursday that the party would not be able to pay for the full $4.5 trillion in tax cuts they had originally envisioned.
The GOP remains divided on the issue. While Trump's MAGA-aligned base has pushed for more populist economic measures, traditional conservatives in the House and Senate have resisted tax increases, particularly on high-income earners. Republican leaders have instead focused on deficit concerns and extending the 2017 tax law without major offsets.
