Investing.com - U.S. President Donald Trump is considering giving his support to a marginal tax-rate increase for Americans making over $2.5 million, according to the Wall Street Journal.
Citing people familiar with the matter, the WSJ said Trump is mulling backing a proposal that would lift the top individual income-tax rate to 39.6% from 37% for these high earners.
The report comes as Republican lawmakers are pushing to fold other tax cuts endorsed by Trump into a sweeping fiscal package that they hope to release in the coming days.
Democrats in Congress have argued that the bill, which Republicans hope to soon push through the House of Representatives, aims to slash social programs to fund tax cuts for wealthy Americans.
Yet many Republicans have expressed doubts around an increased top-end tax rate, possibly complicating Trump’s efforts to pass a bill. Republicans have a narrow majority in both the House and the Senate, the two chambers of the U.S. Congress.
The top tax rate previously stood at 39.6% when Trump began his first term in office in 2017, although the figure was lowered to 37% later that year. However, the reduction is set to expire after 2025.
Trump previously rejected the idea of a tax increase on the rich last month, arguing that it would be disruptive and provide political ammunition for Democrats.