The Republican Party is breaking with decades of tradition, and it’s all thanks to Trump’s populist momentum.
A new push on Capitol Hill has stunned longtime fiscal conservatives: GOP lawmakers are now actively discussing raising the top income tax rate on millionaires. It’s a dramatic shift from the party’s historic opposition to tax hikes, and one that reflects how much the political landscape has changed under President Donald Trump’s leadership.
Fox News Digital reports that discussions have centered around creating a new 40% tax bracket for Americans earning over $1 million annually—a potential increase from the current 37% top marginal rate. Even more striking: these conversations are happening inside Trump’s own orbit.
Former House Speaker Newt Gingrich tried to pump the brakes this week, posting a message attributed to Trump that seemed to walk back the idea. The message reportedly said, “If you can do without it, you’re probably better off trying to do so,” in reference to the proposal.
But the discussion is very real—and it’s rattling some in the party’s establishment.
“This used to be anathema to Republicans,” said GOP strategist Doug Heye, recalling the fallout from George H.W. Bush’s infamous “read my lips” tax pledge. “That world just doesn’t exist anymore.”
Strategists say the change is being driven by Trump’s populist base, which has little sympathy for ultra-wealthy elites and plenty of support for tax cuts that benefit working Americans. The White House is pushing for the elimination of taxes on overtime pay and tipped income—part of Trump’s “Made in America” budget plan—and Republican lawmakers are looking for ways to offset the costs.
House Freedom Caucus Chairman Andy Harris was blunt: “If we can’t get enough spending reductions, we’re going to have to pay for our tax cuts.”
He floated reinstating the pre-Trump top tax bracket of 39.6%—but only for those earning over $2 million. Rep. Dan Meuser, R-Pa., also suggested nudging the top rate to 38.6%, saying all options should be on the table to deliver savings and keep Trump’s economic promises intact.
Still, not everyone is sold.
Former Vice President Mike Pence—who calls the 2017 Trump tax cuts a legacy achievement—warned Republicans not to retreat. “Hold the line,” he said, urging the GOP to make the Trump-Pence tax cuts permanent instead.
Critics also point to the risk of undermining growth. “Raising taxes is a short-term high, which ultimately does more harm than good,” said one former Republican lawmaker.
Others argue the math doesn’t add up. Marc Goldwein of the Committee for a Responsible Federal Budget says raising top marginal rates sounds fiscally smart, but it’s often paired with fiscally irresponsible new spending. “I don’t think raising tax rates is the best way to raise revenue,” he said.
Still, the fact that this conversation is even happening is proof that Trump has fundamentally changed the GOP’s political DNA. The party of corporate tax shelters and flat taxes is now entertaining wealth taxes and targeted levies aimed squarely at millionaires.
That shift has left establishment figures stunned—but for Trump’s base, it’s long overdue.
As one Republican insider told Fox, reaction to the tax hike idea among GOP lawmakers is “mixed.” But among voters? The populist pitch may be a political winner—even if it’s a fiscal gamble.
Whether this idea becomes policy or dies in committee remains to be seen. What’s clear is that the modern GOP is no longer defined by reflexive anti-tax ideology. It’s being reshaped by Trump’s America First vision—and that means no sacred cows, even for the wealthy.
