Republicans debating tax increase for the rich to pay for other tax cuts

The wealthiest Americans could see their taxes increase at the end of the year

if Republicans move forward with a proposal they're actively debating. They're looking for ways to offset a projected decrease in revenue

that would occur if they extend the Trump tax cuts. The Tax Cuts and Jobs Act of 2017, which lowered the rate for most taxpayers

is set to expire at the end of 2025. It decreased the highest rate from 39.6 percent to 37 percent

and increased the income threshold for that bracket from $546,000 to $642,000

The legislation was President Trump's signature economic policy victory during his first term

and Republicans are determined to make it permanent. Extending the TCJA is expected to reduce federal revenue by $4.5 trillion over the next 10 years

according to the Tax Foundation. That's a tough reality for a party that campaigns on responsible spending and deficit reduction

Republicans are also trying to expand the TCJA by eliminating taxes on tips, overtime, and Social Security benefits

That would reduce revenue even further. Raising taxes on the wealthy would make up for some of that lost revenue and directly counter a key Democratic speaking point

that Republicans want to pass the tax bill to help corporations and billionaire donors

The proposal is getting mixed reviews in the GOP. President Trump recently told Senate Republicans that he's open to the idea

Leadership in the House of Representatives is opposed. I mean, we're the Republican Party and we're for tax reduction for everyone

So, I mean, that's a general principle that we always try to abide by. Treasury Secretary Scott Bessent said in an interview with Bloomberg that everything is on the table

The outlet reported earlier this month that Republicans are also considering adding a new tax bracket for those making $1 million or more

I'm Ray Bogan for Straight Arrow News. For more reporting, download the SAN app