According to the Hill, President Trump’s latest tax proposal is already drawing sharp criticism, even from within his own party.
Senate Majority Leader John Thune, a Republican from South Dakota, is voicing strong opposition to a plan that would introduce a new tax bracket targeting the ultra-wealthy.
Trump’s proposal calls for a 39.6% tax rate on incomes over $2.5 million, a move that Thune argues could be detrimental to America’s economy. Thune, who made his comments during an appearance on CNBC’s Squawk Box, believes the tax hike could undermine the entrepreneurial spirit that drives economic growth. “I don’t want to see taxes go up on anybody,” he said, indicating that he’s not ready to embrace what he sees as a potential setback for business innovation.
While the plan is set to be introduced in the House under Speaker Mike Johnson’s leadership, Thune’s resistance signals a larger divide within the Republican Party. For some members, particularly those aligned with pro-growth economic principles, the proposal feels more like class warfare than a sensible fiscal strategy.
Trump’s proposal isn’t just a policy quirk; it’s a political hot potato. He tasked House Speaker Mike Johnson with rallying the troops, but many House Republicans are digging in against taxing the wealthy. They argue it punishes success—hardly a woke talking point, but a fair one. On Truth Social, Trump posted, “Republicans should probably not do it, but I’m OK if they do!!!” Talk about mixed signals. It’s classic Trump: throw out a bold idea, then let the party sort out the mess.
Thune, ever the pragmatist, noted the House will decide the proposal’s fate. “They’re going to have to figure out how to dial this,” he said. Translation: good luck getting tax-averse Republicans to play ball with a millionaire tax.
Thune’s real focus is keeping businesses thriving, not bleeding them dry. He’s pushing to make key tax provisions permanent, like bonus depreciation and research expensing. These aren’t sexy, but they’re the gears that keep America’s economic engine humming.
“On the business side, what you want is growth,” Thune said. He’s not wrong—96% of U.S. businesses are pass-through entities, meaning tax hikes on high earners could hit small businesses hard. Woke tax crusaders might not care, but job creators do.
Thune suggested a carve-out for pass-through businesses to shield them from a new tax bracket. It’s a smart move to protect the little guy—or at least the little guy with a million-dollar operation. Not exactly Robin Hood, but it’s practical.
Trump’s broader tax vision prioritizes relief for everyday workers. He’s pitched shielding tipped income, overtime pay, and Social Security benefits from taxes. That’s a populist flex aimed at the heartland, not the Hamptons.
“Trump wants to target tax relief to the people who are out there trying to make a living,” Thune said. It’s a reminder that Trump’s base isn’t sipping champagne in penthouses—they’re clocking hours and paying bills. Sorry, elites, no tax breaks for your yacht club. Thune acknowledges Trump’s unconventional approach. “People didn’t vote for a conventional president,” he said. That’s putting it mildly—Trump’s tax ideas are as predictable as a reality TV plot twist.
The tax proposal’s success hinges on the House, where GOP opposition is fierce. Many Republicans see tax hikes as a betrayal of their low-tax gospel. They’re not wrong—punishing wealth creation rarely ends well. Thune’s keeping his powder dry, focusing on business-friendly policies over populist tax experiments. “We’re all about lowering taxes, not raising taxes,” he told “Squawk Box” host Joe Kernen. That’s the GOP line, and Thune’s sticking to it like glue.
Still, Trump’s willingness to entertain a millionaire tax shows he’s not afraid to buck party dogma. Whether it’s genius or chaos, only the House can decide. For now, Thune’s playing the skeptic, and who can blame him when the woke tax mob is cheering from the sidelines?
