In a twist few would have predicted a decade ago, some Republicans in Congress are openly considering raising taxes on the wealthy to help fund former President Donald Trump’s ambitious new legislative push — a move that is rattling conservative stalwarts and testing the GOP’s longstanding identity as the party of tax cuts.
The idea, still in early stages and far from certain to be included in the final legislation, is part of deliberations around Trump’s so-called “big beautiful bill” — a sweeping package of Republican priorities including extensions of the 2017 tax cuts, energy policies, border security measures, and populist campaign promises like eliminating taxes on tips.
Among the most eye-catching proposals on the table: increasing the top marginal income tax rate to 39.6% or even 40% on households making more than $1 million annually. That would mark a partial reversal of Trump’s own 2017 tax overhaul, which slashed the top rate from 39.6% to 37% and lowered the threshold for entering the top bracket.
“It might surprise you,” Sen. Chuck Grassley (R-Iowa) acknowledged during a town hall this week, confirming that the Senate Finance Committee — of which he is a senior member — is weighing a return to the higher rate for the wealthiest Americans. “Now, that doesn’t mean it’s going to happen,” he added. “The rationale for it is we can take that money and use it for increasing the child tax credit.”
A Shift Driven by Political and Budgetary Realities
While still politically sensitive, the idea has gained traction among some corners of the GOP as lawmakers face pressure to fund costly priorities without increasing the federal deficit — a non-negotiable demand for fiscal hawks within the party.
“Republicans should reject any effort to increase deficits,” Rep. Chip Roy (R-Texas) posted on X. “Some people are proposing additional tax cuts without commensurate spending cuts. That would be madness and would defeat the bill.”
Roy’s comment was a direct rebuttal to former Speaker Newt Gingrich, who warned this week against any tax hikes, calling the idea “madness” that would “defeat the bill.” But the internal divide is real — and growing.
Rep. Andy Harris (R-Md.), chair of the House Freedom Caucus, offered a rare counterpoint among the GOP leadership, saying a 40% tax bracket on million-dollar earners could be “a reasonable way to pay for” Trump’s priorities.
A Political Tightrope for the GOP
The very fact that Republicans are floating a tax increase — even one targeting the ultra-wealthy — marks a major departure from decades of conservative economic orthodoxy. It also highlights the increasingly populist leanings of the Trump-era GOP, which has at times been more concerned with kitchen-table economics than traditional supply-side theory.
Still, the idea is far from universally accepted within the party.
House Speaker Mike Johnson (R-La.) made clear in recent public appearances that he remains opposed. “Generally, we’re trying to reduce taxes around here,” he said. On Fox News, he added: “We’re the Republican Party and we’re for tax reduction for everyone.”
Trump’s own record complicates the picture. As president, he campaigned aggressively on lowering taxes and mocked Democrats for advocating hikes on high earners. “They’re going to raise it up to 39 or 40 percent or maybe even 50 percent,” he said at one campaign stop. “Would you please vote for me to raise the tax? Hard to say.”
Now, his allies are trying to square that rhetoric with the fiscal demands of a sweeping legislative package that could cost trillions and will need to be passed through budget reconciliation — a process that allows Senate Republicans to avoid a Democratic filibuster, but requires the bill to be deficit neutral or include offsets.
Conservative Backlash in Full Swing
The response from traditional tax-cut warriors has been swift and scathing. Grover Norquist, the influential anti-tax activist behind Americans for Tax Reform, likened Republicans who vote for tax hikes to a contaminant in an otherwise pure product.
“Republican elected officials who vote for tax increases are rat heads in a Coke bottle,” Norquist said bluntly, arguing that even discussing the idea damages the GOP’s brand.
Former Trump economic adviser and conservative commentator Larry Kudlow echoed that sentiment, calling the proposal “unwise and unnecessary.” “The top end pays half the taxes in the first place,” Kudlow said this week during a Fox Business segment.
What Comes Next?
Republican lawmakers are currently in the thick of negotiations, working to finalize the contours of the “big beautiful bill” following last week’s passage of a budget resolution that sets the stage for reconciliation.
Whether a top tax rate increase ultimately makes it into the final package remains an open question. The idea is not without internal resistance, but it has proven resilient in early discussions — and may offer a political middle ground for a party now juggling the demands of populist messaging, deficit discipline, and Trump’s unpredictable policy instincts.
