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White House quietly floats millionaire tax hike proposal in Congress as GOP leaders signal opposition

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White House aides are quietly floating a proposal within the House GOP that would raise the tax rate for people making more than $1 million to 40%, two sources familiar with discussions told Fox News Digital, to offset the cost of eliminating tips on overtime pay, tipped wages, and retirees’ Social Security.

The sources stressed the discussions were only preliminary, and the plan is one of many being talked about as congressional Republicans work on advancing President Donald Trump’s agenda via the budget reconciliation process.

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Trump and his White House have not yet taken a position on the matter, but the idea is being looked at by his aides and staff on Capitol Hill.

Meanwhile House GOP leaders including Speaker Mike Johnson, R-La., have publicly opposed the idea of any tax hikes.

TRUMP OPEN TO SENDING VIOLENT AMERICAN CRIMINALS TO EL SALVADOR PRISONS

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Speaker Mike Johnson is working to pass President Trump’s agenda via the budget reconciliation process (Getty Images)

«I’m not a big fan of doing that. I mean, we’re the Republican Party and we’re for tax reduction for everyone,» Johnson said on «Sunday Morning Futures.»

One GOP lawmaker asked about the proposal and granted anonymity to speak candidly said they would be open to supporting it but preferred a higher starting point than $1 million.

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They said the reaction was «mixed» among other House Republicans. But not all House GOP lawmakers are privy to the discussions, and it’s not immediately clear how wide the proposal has been circulated.

Nevertheless, it signals that Republicans are deeply divided on how to go about enacting Trump’s tax agenda.

MEET THE TRUMP-PICKED LAWMAKERS GIVING SPEAKER JOHNSON A FULL HOUSE GOP CONFERENCE

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Extending Trump’s 2017 Tax Cuts and Jobs Act (TCJA) and enacting his newer tax proposals is a cornerstone of Republicans’ plans for the budget reconciliation process.

By lowering the Senate’s threshold for passage from 60 votes to 51, it allows the party in power to skirt opposition to pass a sweeping piece of legislation advancing its own priorities – provided the measures deal with tax, spending, or the national debt.

Extending Trump’s tax cuts is expected to cost trillions of dollars alone. But even if Republicans use a budgetary calculation to hide its cost, known as current policy baseline, they will still have to find a path forward for new policies eliminating taxes on tips, overtime pay, and retirees’ Social Security checks.

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Hiking taxes on the ultra-wealthy could also serve to put Democrats in a tricky political situation in forcing them to choose between supporting Trump’s policies and opposing an idea they’ve pushed for years.

Steve Scalise speaks during Day 2 of the Republican National Convention

House Majority Leader Steve Scalise is also opposed to raising taxes on the rich (REUTERS/Mike Segar)

The top income tax rate is currently about 37% on $609,351 in earnings for a single person or $731,201 for married couples. 

But raising the rate for millionaires could be one way to pay for Trump’s new tax policies.

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House Freedom Caucus Chairman Andy Harris, R-Md., one of the deficit hawks leading the charge to ensure new spending is paired with deep cuts elsewhere, said «That’s one possibility.»

«What I’d like to do is I’d actually like to find spending reductions elsewhere in the budget, but if we can’t get enough spending reductions, we’re going to have to pay for our tax cuts,» Harris told «Mornings with Maria» last week.

«Before the Tax Cuts and Jobs Act, the highest tax bracket was 39.6%, it was less than $1 million. Ideally, what we could do, again, if we can’t find spending reductions, we say ‘Okay, let’s restore that higher bracket, let’s set it at maybe $2 million income and above,’ to help pay for the rest of the president’s agenda.»

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But Johnson’s No. 2, House Majority Leader Steve Scalise, R-La., again poured cold water on the idea Tuesday.

«I don’t support that initiative,» Scalise told «Mornings with Maria,» though he added, «everything’s on the table.»

Andy Harris

House Freedom Caucus Chair Andy Harris signaled openness to the idea (Getty Images)

«That’s why you hear all kind of ideas being bounced around. And if we take no action, then you’d have over 90% of Americans see a tax increase,» Scalise warned.

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Bloomberg News was first to report House Republicans’ 40% tax hike proposal.

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When reached for comment, the White House pointed Fox News Digital to comments by Press Secretary Karoline Leavitt earlier on Tuesday when she said Trump had not made up his mind on another proposal to raise the corporate tax rate.

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«I’ve seen this idea proposed. I’ve heard this idea discussed. But I don’t believe the president has made a determination on whether he supports it or not,» Leavitt said.

Fox News Digital also reached out to Johnson’s office for comment.

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Schumer, Democrats try to save face, blame GOP for possible government shutdown

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Congressional Democrats are trying to get on the same page and display a unified front after threatening to derail the government funding process.

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Senate Minority Leader Chuck Schumer, D-N.Y., and House Minority Leader Hakeem Jeffries, D-N.Y., met behind closed doors Tuesday night, along with the top Democrats in the House and Senate Appropriations Committees, to plot a course forward in the forthcoming government funding fight.

SENATE WEATHERS DEM OPPOSITION, ADVANCES FIRST GOVERNMENT FUNDING BILL

Senate Minority Leader Chuck Schumer, D-N.Y., turns to an aide during a news conference at the Capitol in Washington, D.C., on June 3, 2025. (AP Photo/J. Scott Applewhite)

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The meeting came after Democrats in the upper chamber overwhelmingly supported the first government funding bill to hit the Senate floor, one that would fund military construction and Veterans Affairs. Ahead of the vote, Senate Democrats had signaled they may vote against the bill and further obstruct the appropriations process because of highly partisan legislation rammed through the upper chamber by Senate Republicans.

«We all want to pursue a bipartisan, bicameral appropriations process,» Schumer said. «That’s how it’s always been done, successfully, and we believe that, however, the Republicans are making it extremely difficult to do that.»

The meeting just off the Senate floor was meant to get congressional Democrats on board with a messaging plan over the next weeks and months ahead of the Sept. 30 deadline to fund the government.

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CONGRESSIONAL REPUBLICANS FACE BRUISING BATTLE TO AVOID GOVERNMENT SHUTDOWN

John Thune

Senate Majority Leader John Thune, R-S.D., is seen after the Senate luncheons in the U.S. Capitol on June 24, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

It was also likely designed to prevent a repeat of the Democratic debacle in March, when Schumer broke with Jeffries and threatened to shutter the government before ultimately caving and providing Republicans the votes necessary to advance yet another government funding extension, known as a continuing resolution.

Republicans are quick to point out that when Schumer led the upper chamber, none of the House GOP’s spending bills made it to the floor — in Congress, the spending process begins in the lower chamber.

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Since taking over earlier this year, Senate Majority Leader John Thune, R-S.D., has committed to returning to regular order, or passing each of the dozen spending bills to fund the government, and trying to get the appropriations process back to normal.

However, it’s a feat that hasn’t been successfully done in Washington since the late 1990s. 

«Frankly, I think a lot of us around here think [this] is long overdue,» Thune said.  

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However, Democrats contend that their trust in Republicans is wearing thin after two major partisan bills, one being President Donald Trump’s «big, beautiful bill,» and the other the president’s $9 billion clawback package, were pushed through the chamber without any Democratic input.

‘BAIT AND SWITCH’: SCHUMER WARNS OF BITTER FUNDING FIGHT OVER GOP CUTS PLAN

Rep. Hakeem Jeffries

Representative Hakeem Jeffries, a Democrat from New York, speaks during a news conference at the U.S. Capitol in Washington, D.C., on Feb. 6, 2025. (Tierney L. Cross/Bloomberg via Getty Images)

Thune argued that Senate Democrats were using the rescissions package to shut down the appropriations process and effectively shut down the government.

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In the Senate, most bills that come to the floor require at least 60 votes to smash through the filibuster, meaning that most legislation requires bipartisan support to some extent.

Earlier this year, the House GOP produced a partisan government funding extension that was a tough pill for Senate Democrats to swallow, but they still ultimately opted to vote for it. This time around, they’re demanding more involvement in the process.

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Jeffries said that congressional Democrats would play ball if the process was «bipartisan and bicameral in nature» and put the onus of a partial government shutdown at the feet of congressional Republicans.

«House Republicans are, in fact, marching us toward a possible government shutdown that will hurt the American people,» he said.

However, House Speaker Mike Johnson, R-La., threw the responsibility on Democrats over whether the government would shutter or stay open come the end of September.

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«They’re gaming out how they can shut the government down,» Johnson told Bloomberg Government. 

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Ucrania: el presidente Volodimir Zelenski enfrenta críticas y protestas por una nueva ley anticorrupción

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Activistas ucranianos convocaron más protestas este miércoles contra una ley que, según ellos, debilita los organismos anticorrupción del país, tras la primera gran manifestación contra el gobierno del país en más de tres años de guerra. La legislación también ha recibido críticas de funcionarios de la Unión Europea y grupos internacionales de derechos humanos.

El presidente, Volodimyi Zelenski, presionado porque la medida amenazaba con poner en peligro su apoyo público en un momento crítico de la guerra, citó a los jefes de las principales agencias anticorrupción y de seguridad de Ucrania el miércoles por la mañana en respuesta a la protesta contra su decisión de aprobar la nueva ley aprobada por el Parlamento.

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“Todos escuchamos lo que dice la sociedad”, escribió Zelenski en Telegram después de la reunión. Sin embargo, insistió en que el nuevo marco legal era necesario para combatir más duramente la corrupción.

“Los casos penales no deberían prolongarse durante años sin veredictos, y aquellos que trabajan contra Ucrania no deben sentirse cómodos o inmunes al castigo”, dijo el líder ucraniano.

Dijo que todas las agencias gubernamentales acordaron trabajar de forma constructiva y responder a las expectativas públicas de equidad y eficacia. Se espera un plan de acción conjunto detallado dentro de dos semanas, destinado a abordar las debilidades institucionales, eliminar obstáculos legales y garantizar la justicia en todos los ámbitos, dijo.

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Ucranianos protestan en la primera manifestación en tiempos de guerra contra una ley recién aprobada que limita la independencia de las instituciones anticorrupción. Foto Reuters

Miles de personas se reunieron en la capital y otras ciudades de Ucrania el martes por la noche para instar a Zelenski a vetar un controvertido proyecto de ley. Después de que Zelenski lo aprobara, los activistas convocaron en las redes sociales otra protesta en el centro de Kiev a las 8 de la tarde del miércoles.

La legislación endurece la supervisión gubernamental de dos agencias anticorrupción clave. Los críticos dicen que la medida podría debilitar significativamente la independencia de esas agencias y otorgar al círculo de Zelenski una mayor influencia sobre las investigaciones.

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Combatir la corrupción arraigada es crucial para las aspiraciones de Ucrania de unirse a la UE y mantener el acceso a miles de millones de dólares en ayuda occidental en su lucha contra la invasión de tres años de Rusia.

“Limitar la independencia de la agencia anticorrupción de Ucrania obstaculiza el camino de Ucrania hacia la UE”, advirtió este miércoles el ministro de Asuntos Exteriores de Alemania, Johann Wadephul, en una publicación en X.

El comisario de Defensa de la UE, Andrius Kubilius, señaló también en X que: “En la guerra, la confianza entre la nación combatiente y su liderazgo es más importante que las armas modernas. Difícil de construir y mantener, pero fácil de perder con un error significativo del liderazgo”.

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El presidente ucraniano, Volodimir Zelenski, convocó a los jefes de todas las agencias de investigación y de lucha contra la corrupción del país. Foto EFEEl presidente ucraniano, Volodimir Zelenski, convocó a los jefes de todas las agencias de investigación y de lucha contra la corrupción del país. Foto EFE

La rama ucraniana de Transparencia Internacional criticó la decisión del Parlamento, diciendo que socava una de las reformas más significativas desde lo que Ucrania llama su Revolución de la Dignidad en 2014, y daña la confianza con los socios internacionales. Acusó a las autoridades de “desmantelar” la arquitectura anticorrupción del país.

Zelenski ha sido el rostro internacional de la determinación de Ucrania ante la invasión total de Rusia, y sus problemas internos son una distracción no deseada del esfuerzo de guerra.

Zelenski dijo que la medida elimina la “influencia rusa” de la lucha contra la corrupción y garantiza el castigo para aquellos que sean encontrados culpables de ella, después de lo que él describió como retrasos de años en procedimientos penales que involucran enormes cantidades de dinero.

“Los casos que se han quedado parados deben ser investigados”, dijo Zelenski en una publicación de Telegram después de la medianoche del miércoles. “Durante años, funcionarios que han huido de Ucrania han estado viviendo casualmente en el extranjero por alguna razón, en países muy agradables y sin consecuencias legales, y esto no es normal”, dijo. No proporcionó ejemplos de lo que dijo era interferencia rusa.

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Las autoridades rusas disfrutaron de las dificultades de Zelenski. La portavoz del Ministerio ruso de Exteriores, María Zajárova, se burló de las afirmaciones de Zelenski sobre la infiltración rusa en la agencia anticorrupción, señalando sarcásticamente que “también podrían sacar un par de osos de la esquina”.

Negociaciones en Estambul

Delegaciones de Rusia y Ucrania tenían previsto reunirse en Estambul este miércoles para su tercera ronda de conversaciones directas en dos meses, dijeron funcionarios del Kremlin y ucranianos. No se esperaba que la reunión lograra progresos en poner fin a la guerra y probablemente se centraría en los intercambios de prisioneros de guerra.

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Los cambios legislativos otorgarían al fiscal general nueva autoridad sobre las investigaciones y casos manejados por la Oficina Nacional Anticorrupción de Ucrania (NABU) y la Oficina del Fiscal Especializado en Anticorrupción (SAPO).

El ambiente de ira y frustración entre los ucranianos cansados de la guerra prevaleció en la multitud el martes. Algunos manifestantes acusaron a los líderes de Ucrania de priorizar la lealtad y las conexiones personales sobre la lucha contra la corrupción.

“Aquellos que juraron proteger las leyes y la Constitución han elegido en su lugar proteger a su círculo íntimo, incluso a expensas de la democracia ucraniana”, dijo el veterano Oleh Symoroz, sentado en una silla de ruedas porque le amputaron ambas piernas después de ser herido en 2022.

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Trump admin official to meet with Israel, Qatar amid push for Gaza ceasefire

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Special Envoy Steve Witkoff is expected to meet with Israeli and Qatari officials in Rome on Thursday as the U.S. pushes for a ceasefire deal in Gaza. 

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Hamas and Israel are engaging in indirect negotiations to end the war that has raged on for nearly two years. However, Witkoff’s itinerary depends on the progress made in the talks. If the parties make enough progress in Rome, Witkoff will reportedly travel to Doha to finalize the deal, according to Axios. 

The outlet also reported that sources indicated the meeting in Rome could suggest that a deal is near — possibly just days away.

Earlier this month, Israel agreed to a U.S.-backed, 60-day ceasefire proposal that would lead to the end of the war. This deal includes a phased release of hostages, the withdrawal of Israeli troops from parts of Gaza and talks on ending the conflict, according to Reuters.

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Special Envoy Steve Witkoff is expected to meet with Israeli and Qatari officials in Rome on Thursday to secure a deal to end the war in Gaza. (Dawoud Abo Alkas/Anadolu/Kevin Dietsch/Getty Images)

ISRAEL, HAMAS TALKS DRAG AS AID GROUP CHAIR TELLS UN TO STOP ACTING LIKE THE ‘MAFIA’

«My representatives had a long and productive meeting with the Israelis today on Gaza. Israel has agreed to the necessary conditions to finalize the 60 Day CEASEFIRE, during which time we will work with all parties to end the war. The Qataris and Egyptians, who have worked very hard to help bring peace, will deliver this final proposal. I hope, for the good of the Middle East, that Hamas takes this deal because it will not get better — IT WILL ONLY GET WORSE,» President Donald Trump wrote on Truth Social on July 1.

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President Donald Trump and Israeli Prime Minister Benjamin Netanyahu dine together in Washington, D.C.

President Donald Trump holds a bilateral dinner with Israeli Prime Minister Benjamin Netanyahu, with Defense Secretary Pete Hegseth and Secretary of State Marco Rubio in attendance, at the White House in Washington, D.C., July 7, 2025. (REUTERS/Kevin Lamarque)

ISRAEL ACCEPTS TRUMP-LED CEASEFIRE PLAN THAT COULD END GAZA WAR WITHIN 60 DAYS

Trump appeared optimistic about the possibility of Israel and Hamas reaching a deal to end the war. On July 16, while signing the HALT Fentanyl Act, Trump thanked Witkoff, praising him for doing «a fantastic job» and said that there was «some good news on Gaza,» though he did not elaborate.

Abraham Accords signing

From left to right, Foreign Affairs Minister of Bahrain Abdullatif bin Rashid Al Zayani, Prime Minister of Israel Benjamin Netanyahu, President Donald Trump and Foreign Affairs Minister of the United Arab Emirates Abdullah bin Zayed bin Sultan Al Nahyan participate in the signing ceremony of the Abraham Accords on the South Lawn of the White House on Sept. 15, 2020, in Washington, D.C. (Photo by Alex Wong/Getty Images)

TRUMP PRESSURES ISRAEL TO END GAZA CONFLICT AS HE EYES ABRAHAM ACCORDS EXPANSION

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If Trump can secure an end to the war, it could mean an expansion of the Abraham Accords, one of the signature efforts of Trump’s first administration, which saw Israel sign normalization agreements with the United Arab Emirates, Bahrain, Morocco and Sudan. However, Trump has yet to detail which countries would be added.

Israeli Minister of Foreign Affairs Gideon Sa’ar said on June 30 that Israel was «serious» about seeking an end to the conflict. He added that Jerusalem has an interest in «countries, such as Syria and Lebanon, our neighbors, to the circle of peace and normalization.»

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Fox News Digital’s Greg Wehner and Caitlin McFall contributed to this report.


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