(Rightallegiance.com) – Former Vice President Mike Pence has publicly advised President Donald Trump to reconsider proposals to raise taxes on high-income earners, emphasizing potential negative impacts on small businesses. This recommendation comes amid ongoing discussions within the Trump administration about increasing taxes for individuals earning over $2.5 million annually.
President Trump has proposed raising the top tax rate from 37% to 39.6% for individuals earning more than $2.5 million per year. The proposal also includes closing the carried-interest loophole, which benefits hedge fund and private equity managers. The administration suggests that these measures could fund tax cuts for middle- and working-class households and preserve Medicaid.
In an interview with Fox News Digital, Pence expressed strong opposition to the proposed tax increases, arguing that they would constitute a significant tax hike on small business owners. He noted that many individuals who file taxes at the highest rate are small business owners who reinvest their earnings into their companies. Pence emphasized that raising taxes on these individuals could hinder economic growth and job creation.
The proposal has sparked divisions within the Republican Party. While some lawmakers, such as Senator Mike Crapo, have expressed reservations, others are open to the idea if Trump strongly endorses it. However, House Speaker Mike Johnson has dismissed proposals to raise taxes on the wealthy, maintaining the GOP’s traditional stance on tax reductions.
Critics argue that increasing taxes on high earners could negatively affect small businesses, which are a significant source of employment in the U.S. They warn that higher taxes could lead to reduced hiring and wage growth. Proponents of the tax increase counter that it could help fund essential services and reduce the deficit.
As discussions continue, the debate over raising taxes on the wealthy highlights the challenges of balancing fiscal responsibility with economic growth. The outcome of this debate could have significant implications for the Republican Party’s economic agenda and its appeal to voters in upcoming elections.