Trump's internal millionaires' monologue
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President Trump has been negotiating with himself on a millionaires' tax: He's for it at the $2.5 million level, after being against it at $1 million.
Why it matters: Negotiating with his own party may be easier. House Speaker Mike Johnson (R-La.) will tell Trump on Friday that the House will deliver on the president's tax priorities, according to a congressional aide.
- Senate Finance Chair Mike Crapo (R-Idaho) admitted he's "not excited about the proposal," before quickly adding, "There are a number of people in both the House and Senate who are."
- "If the president weighs in in favor of it, then that's going to be a big factor that we have to take into consideration as well," he said on Hugh Hewitt's radio show.
Driving the news: Trump told Johnson over the phone Wednesday that the House should increase the top rate from 37% for individuals making $2.5 million and up ($5 million for married couples).
- "This is to pay for working- and middle-class tax cuts that were promised, and protect Medicaid," an administration official told Axios.
- Trump is also insisting that carried interest be treated like regular income, which would amount to a tax increase for the private equity industry.
Between the lines: Just as Trump is calling for higher taxes on the wealthy, blue state Republicans are demanding that Trump lower them by increasing the SALT cap.
- New York Republicans are now rejecting lifting that cap from $10,000 to $30,000. Some lawmakers want to go as high as $62,000.
Flashback: Trump told Time Magazine in April that "I actually love the concept," or higher taxes on the wealthy.
- "But I don't want it to be used against me politically, because I've seen people lose elections for less, especially with the fake news," he said.
Zoom in: As Republicans look at the math of Trump's "one big, beautiful bill," they are confronted with a stark reality: They are short on revenue and long on spending.
- Speaker Johnson is committed to a "ratchet" system, where he can only pass $4 trillion in tax cuts if he can find $1.5 trillion in savings.
The bottom line: Since the "Reagan Revolution," Republicans have been preternaturally predisposed to hate taxes. Or, as House Majority Leader Steve Scalise said when the millionaire's tax was floated in April.
- "No. 1 goal is keeping rates where they are and preventing a tax increase."
