Washington – President Donald Trump and Chamber Mike Johnson, R -La., Came against a tax increase on millionaires, seeming to close the door to an idea that some Republicans have planned to pay their Massive Party bill.
“I think it would be very disruptive because many millionaires would leave the country,” Trump told journalists in the oval office when he asked him about the proposal on Wednesday. “In the past, they have left the States. They go from one state to another. Now, with the transport so fast and so easy, they leave the countries.”
“You will lose a lot of money if you do this,” added the president. “And other countries that have done it have lost many people. They lose their rich. It would be bad, because wealthy people pay the tax.”
The tax rate on high wages should automatically increase from 37% to 39.6% at the end of this year, when the large parts of Trump tax cuts in 2017 expire. Some Republican legislators have said they are ready to let this higher rate increase as a means of limiting the impact of the deficit in their program, which includes tax alternatives and expenditure increases on the application of immigration and the military.
Johnson also threw cold water on the prospect of an increase in taxes on Americans earning more than a million dollars a year.
“I wouldn’t expect this. We worked against this idea,” said Johnson on Fox News on Wednesday. “I am not in favor of the increase in tax rates because it is our group is the group that is traditionally opposed to this. So there are a lot of ideas thrown on the table along this process in the past year, but I would say just for everyone, wait and see.”
“I don’t think we are increasing taxes on anyone,” he added. “What we are trying to do is prevent the highest increase in tax in the history of the United States.”
The idea of an increase in higher tax rates has been put on the table by the main Republicans in the context of a menu of options to prevent a massive increase in the deficit following a bill to adopt Trump’s legislative agenda, which should cost billions of dollars. Others say that an increase in higher rates would help reach other Trump priorities, such as Nixing Taxes on Advice.
The rejection of the idea is likely to further complicate the task of making legislation in a way that does not do debt. An extension of Trump’s tax law in 2017 is expected to cost $ 4.6 billions of dollars on its own, and Republicans are also putting pressure on hundreds of billions of dollars with new expenses.
Representative Chip Roy, R-Texas, told NBC News in an interview that it was open to all policies that prevented new deficits, including higher tax authorization. He said that the expected savings are about $ 300 billion if the highest rate amounts to 39.6%, and if the Republicans maintain the lower rate, they must compensate for significant spending reductions.
“Morally, I think taxes should be lower for everyone. We don’t need to tax the American people as much as we do,” said Roy. “However, I also need mathematics to add up.”
GOP’s internal debate was fueled by the party coalition. During the last elections, educated and richer voters have evolved towards the Democrats, while the Republicans carried out gains among the voters of the working class without university diplomas.
However, the drop in taxes, including on the richest Americans, has long been a pillar of the republican platform. And many legislators and external allies want to keep it like this.
A Pew Research Center survey published last month revealed that 58% of American adults said taxes should increase over $ 400,000 per year, including 43% of Republicans.
Democrats focused on the tax extensions of superiors in the context of their case against the law on the Trump agenda, which the Republicans continue on a party basis.
“Why didn’t the Room Republicans do only one thing to reduce the high cost of living in America?” The chief of the Hakeem Jeffries, DN.Y. house minority, wrote during the weekend on X. “The extremists are too busy trying to withdraw your health care and reduce taxes for their super rich donors.”
Garrett Haake And Syedah Asghar contributed.
