Trump Warns Republicans on Raising Taxes for the Wealthy, But Says He’s “OK” If They Do

US President Donald Trump on Friday urged Republican lawmakers to tread carefully when considering tax increases on high-income Americans, warning of potential political fallout — but also signaled he would not oppose such a move, Reuters reports.

“Republicans should probably not do it, but I’m OK if they do!!!” Trump wrote on his social media platform, hinting at internal divisions within the GOP over tax policy as Congress debates the future of Trump-era tax cuts set to expire later this year.

According to sources, Trump had privately encouraged House Speaker Mike Johnson to consider raising the top income tax rate. One proposed adjustment would increase the top marginal rate to 39.6% from the current 37% for individuals earning more than $2.5 million, or joint filers earning $5 million or more. The proposal would reportedly include exemptions for small businesses.

The remarks place Trump at the center of a contentious discussion among congressional Republicans, many of whom are pushing to extend the 2017 tax cuts passed during Trump’s first term. Those tax provisions — including the current top rate of 37% — are scheduled to sunset by the end of 2025.

Trump warned that even a modest tax hike on wealthy earners could be politically damaging, pointing to the failed re-election campaign of former President George H.W. Bush, who famously declared “Read my lips: no new taxes” in 1988, only to approve a tax increase during his presidency.

Democrats have indicated they would likely support tax hikes for the ultra-wealthy, a stance Trump warned could be exploited in the next election cycle.

Despite some in Trump’s populist “Make America Great Again” (MAGA) base supporting higher taxes on billionaires, GOP leadership in Congress — including Johnson — has so far resisted calls for increased tax rates, focusing instead on broad tax relief measures and defending Trump’s legacy tax law.

Republicans have said they plan to pursue the extension of the 2017 tax cuts as part of a broader budget package expected later this summer, which they argue would help stimulate the economy and offset costs related to Trump’s tariff policies on imported goods.