The Trump administration is reportedly considering raising taxes on high earners to fund the elimination of taxes on tipped wages. A senior official indicated that reverting to pre-2018 tax rates may be the most politically viable solution to honor Trump's commitment while simultaneously facing backlash against extending tax cuts for the wealthy. This move aims to counter the Democratic narrative on taxation. However, it contradicts traditional conservative principles and could face resistance from congressional Republicans and wealthy donors amid ongoing budget discussions.
A senior White House official suggested to Axios that letting income rates on the nation's highest earners go back to pre-2018 levels might be politically palatable.
"If we renew tax cuts for the rich, paid for by throwing people off Medicaid, we're gonna get f-ing slaughtered," the official was quoted as telling the outlet.
Some White House officials believe a GOP-led reversal on taxes would allow the Trump administration to turn the tables on Democrats.
Raising taxes would fly in the face of conservative economic principles, creating uncertainty about congressional Republican reception.
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