Donald Trump has proposed raising taxes on the wealthiest Americans, in a breach of Republican orthodoxy that he hopes could pay for broader tax breaks being debated in Congress.
The US president proposed an increase in the tax on people earning more than $2.5mn a year to almost 40 per cent, as he began talks with congressional Republicans on the details of a new fiscal package he hopes to pass this year.
“The president is considering allowing the rate on individuals making $2.5mn or more to revert from 37 per cent to the pre-2017 39.6 per cent. This will help pay for massive middle- and working-class tax cuts, and protect Medicaid,” a person familiar with Trump’s thinking said on Thursday, referring to the government healthcare plan for low-income households.