A GOP congressman said on Saturday that raising the top tax rate for high earners could help President Donald Trump’s massive tax and immigration package get the votes it needs.
“The One Big Beautiful Bill has stalled — and it needs wind in its sails,” Rep. Nick LaLota said on X. “Allowing the top tax rate to expire — returning from 37% to 39.6% for individuals earning over $609,350 and married couples earning over $731,200 — breathes $300 billion of new life into the effort.”
LaLota said that his proposal would be fiscally prudent and could be done “without raising taxes on the middle class.” The New York congressman has suggested that the money generated from raising taxes on high earners could protect Medicaid and “fix” the cap on the so-called SALT deduction.
A SALT deduction allows taxpayers to deduct their state and local tax payments. Since 2018, however, there’s been a $10,000 limit on those deductions. LaLota is among several New York Republicans who are seeking a higher limit so taxpayers can deduct more.
The GOP-led bill proposes raising the cap to $30,000 for taxpayers who earn $400,000 or less. LaLota wants to see the SALT cap set at $62,000 for single filers and $124,000 for joint filers.
Hardline conservatives on Capitol Hill, meanwhile, believe the tax bill should include more spending reductions, arguing that it doesn’t go far enough in cutting into the nation’s budget deficit.
On Friday, five Republicans on the House Budget Committee joined Democrats to tank a procedural vote that would have advanced the “one big beautiful bill.”
House GOP leaders are working through the weekend to put together a deal that could pass in a Sunday night committee vote. They’re still aiming to pass the bill on the House floor by Memorial Day, but the failed vote was a big setback for both Trump and House Speaker Mike Johnson.
On Friday, Trump urged GOP unity on the bill in a post on TruthSocial.
“Republicans MUST UNITE behind, ‘THE ONE, BIG BEAUTIFUL BILL!'” he said. “We don’t need ‘GRANDSTANDERS’ in the Republican Party. STOP TALKING, AND GET IT DONE!”
Conservatives have long advocated for tax cuts for higher earners. However, in recent weeks, Trump has seemingly opened the door to raising taxes on rich Americans to help fund the tax bill, a significant development for a GOP president.
Earlier in May, Trump said on Truth Social that he’d “graciously accept” a small increase on the top tax rate for millionaires but conceded it would present risks for his party.
“Republicans should probably not do it, but I’m OK if they do!!!” he said.
