Trump has been looking to extend his 2017 tax cuts, which are set to expire later this year.
President Donald Trump said on April 27 that the tariffs he imposed on U.S. trading partners will lead to a substantial reduction in tax rates for those making less than $200,000 a year.
“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated,” Trump wrote in a post on his social media platform, Truth Social.
“Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned.”
He called it a “bonanza for America.”
Trump has been looking to extend his 2017 tax cuts, which are set to expire later this year, along with keeping his 2024 campaign promises of no taxes on tips or on Social Security payments.
In an interview with Time Magazine that was published on April 25, Trump said he “love[s] the concept” of raising taxes on millionaires as a means of paying for an extension of the 2017 tax cuts.
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“I certainly don’t mind having a tax increase,” Trump told Time. “I would be honored to pay more, but I don’t want to be in a position where we lose an election because I was generous, but me, as a rich person, would not mind paying and you know, we’re talking about very little.”
He said it would involve raising taxes on the wealthy to “take care of [the] middle class.”
“But I don’t want it to be used against me politically, because I’ve seen people lose elections for less, especially with the fake news,” he said.
Former White House strategist Steve Bannon told News Nation’s “CUOMO” on April 25 that he supported the idea.
“This is being fought behind closed doors right now, and I’m telling you, with the massive tax cut, in addition, he’s going to give the working class and the middle class, the math only works out if you actually increase taxes on the wealthy,” Bannon said.
However, on April 23, the day after he sat down with Time, Trump told reporters at the White House that raising taxes on the wealthy could be “very disruptive” and could lead to a loss of money for the United States.
House Speaker Mike Johnson dismissed the idea in an interview with Fox News.
“I’m not in favor of raising the tax rates because our party is the party that stands against that,” Johnson said on April 23.
He acknowledged that the proposal had been discussed as one of many possible ways to permanently implement personal income tax cuts in the Republicans’ final funding package.
“There were lots of ideas thrown out on the table along this process over the last year, but I would just say for everybody, just wait and see,” Johnson said.
Joseph Lord contributed to this report.
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