Internal Conflict in the GOP
A divide has emerged within the Republican Party over the proposal to tax millionaires more, with former Trump strategist Stephen Bannon advocating for it to generate revenue and counter deficits, while traditionalists like House Speaker Mike Johnson oppose any tax hikes, adhering to GOP orthodoxy.
Prominent Republicans, including Newt Gingrich, fiercely oppose the idea, warning it could lead to a political disaster similar to the fallout from George H.W. Bush's tax increase pledge, which contributed to his 1992 reelection loss.
Presidential Position and Legislative Agenda
President Trump has oscillated on the idea of taxing the wealthy, recently calling a tax hike "disruptive," despite earlier musings of support, as Congress drafts a package central to his domestic policy agenda aimed at extending 2017 tax cuts.
The GOP-led Congress aims to solidify existing tax brackets and introduce new breaks, focusing on maintaining the current top individual tax rate, amid internal debates and the looming expiration of tax cuts from Trump's first term.