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Donald Trump has proposed tax raising for richest Americans, in a violation of Republican Orthodoxy he hopes to pay for wider tax deductions arguing in Congress.
The US president proposed an increase in tax on people earning more than $ 2.5 million a year at almost 40 percent after he began talks with Congress Republicans on the details of a new fiscal package he hopes to pass this year.
“The president is thinking of allowing the rate of individuals who make $ 2.5 million or more return from 37 percent to pre-2017 39.6 percent. This will help pay for middle-class and working class taxes, and protect Medicaid,” said one person known to Trump on Thursday, referring to the health government plan for low-income families.
Trump’s proposal would mark a big break from the traditional access to low Republican taxes to high winners and attracted criticism from some right-wing groups, who said it was more similar to a democratic policy.
It comes while the White House and Republicans in Capitol Hill try to accelerate the fiscal package, which will extend the reduction of the 2017 Trump taxes, which will expire next year.
-Tax law is Trump’s highest legislative advantage for the economy, but was overshadowed at the beginning of his second term by the global trade war he started on April 2, which included a series of high tariffs set for US trading partners.
Talks between Republican lawmakers have also revealed disputes on how to pay for tax cuts and other measures in the package.
As well as taking into account the highest taxes for the richest families, Trump has also signaled his willingness to end the preferential treatment of the defense fund taxes and private equity profits known as “carried interest” in a possible blow in Wall Street.
In addition to taxes for wealthy financiers and Americans, however, lawmakers are also thinking about raising the “salt lid”, an action that would allow property owners to deduct up to $ 30,000 dollars in state and local taxes from their tax bill.
The current $ 10,000 limit was set to the Trump 2017 tax package. The new limit will reach a significant tax cut in many proserized US neighborhoods.
“It is still a constant discussion among the members, and I think we will find the right point,” Mike Johnson, the President of the Republican Chamber, told the journalists.
Trump’s consideration of tax increases for the richest Americans attracted a quick reaction from conservative anti -tax groups.
“Increasing the high level of taxes to 39.6 percent is a Kamala Harris proposal. It lost elections for President Trump. There is no need to approve its tax increase,” Americans said about tax reform, which opposes all tax increases.
