President Donald Trump signaled in a closed-door meeting with Senate Republicans last week that he is open to raising tax rates on the wealthiest Americans, according to three people familiar with the conversation, marking a notable shift in tone amid ongoing talks to extend Trump-era tax cuts, Semafor reported.
The meeting with members of the Senate Budget Committee and Majority Leader John Thune, R-S.D., focused on Trump's legislative priorities for the year. During the session, Sen. Lindsey Graham, R-S.C., asked Trump how he would respond to a proposal allowing tax hikes on the wealthiest taxpayers. Trump replied that he would be "fine with that idea," the sources told Semafor.
Although Trump's response was not interpreted as a strong endorsement, it highlighted his openness to a tax policy shift that some allies say could deflect criticism from Democrats.
Republican lawmakers seek to extend key elements of Trump's 2017 tax cuts, which are set to expire. The law lowered the top income tax rate from 39.6% to 37%. While the party aims to preserve cuts for most taxpayers, lawmakers are weighing whether to allow higher rates for top earners or to create a new tax bracket for individuals earning over $1 million annually.
Despite Trump's openness, GOP leadership remains cautious.
"Republicans are committed to making sure we prevent a $4 trillion tax increase. That's our focus," Senate Majority Whip John Barrasso, R-Wyo., told Semafor. Speaker Mike Johnson, R-La., added that Republicans are "generally … trying to reduce taxes," while House Majority Leader Steve Scalise, R-La., said the party's goal is to "keep rates where they are."
Still, some Republicans have tentatively supported raising taxes on upper-income earners.
House Freedom Caucus Chair Andy Harris, R-Md., said, "If we slightly increase the rate on the highest earners or create a million-dollar earner bracket that's a little bit higher than the current highest level, I'd be OK with that."
Sen. Josh Hawley, R-Mo., said it's unclear whether Congress would support such a move. "I believe the White House wants it. … Now, could you get Republicans in Congress to pass that? I don't know," he said.
Hawley suggested that increased revenue from top earners could be used to finance an expansion of the child tax credit, which he favors. "If the White House wants to offset that with a surcharge on billionaires, that's fine with me. But I might be in the minority in my party," he said.
Trump has also proposed ending taxes on tips, overtime pay, and Social Security benefits. Behind closed doors, Republicans are strategizing to incorporate these ideas into an updated tax package while minimizing political fallout.
Barrasso noted the party is still discussing the "advantages of the child tax credit" as part of the broader negotiations.
In previous efforts to raise taxes on the wealthy, Democrats faced internal resistance, with figures such as former Sen. Kyrsten Sinema, an Arizona independent who often voted with Democrats, opposing rate hikes.