GOP Flirts With Millionaire Tax Hike as Populist Shift Rattles Old Guard

The Republican Party, once known for its ironclad resistance to tax hikes, is now openly debating a new tax bracket for millionaires—a move that’s left some longtime members scratching their heads and strategists pointing to the party’s recent populist makeover.

Veteran GOP insiders remember when even whispering about raising taxes could set off a full-blown mutiny. Doug Heye, a former senior House aide, recalled how a 2012 proposal to create a uniform tax rate for those earning under $1 million fell apart thanks to pushback from within. Now, he says, it’s the very Republicans who once torpedoed that idea that are leading the new charge. Oh, how times (and tax brackets) change.

Sources revealed that the White House has been quietly floating a 40% tax rate on incomes over $1 million to Republicans. Some House GOP plans suggest similar numbers—between 38% and 40% for the ultra-wealthy. That’s a significant bump from the current top rate of about 37% on earnings over $609,351 for singles or $731,201 for couples, a rate lowered by Trump’s 2017 tax overhaul.

But not everyone’s on board. Former House Speaker Newt Gingrich, in true social media fashion, posted a message allegedly from Donald Trump suggesting Republicans should steer clear of the hike: "If you can do without it, you’re probably better off trying to do so." The White House hasn’t commented on the context, or Trump’s apparent ambivalence, leaving political tea leaf readers with plenty to ponder.

John Feehery, veteran GOP strategist, says the politics of taxing the rich are tempting—easy points with voters, but not without economic risks. "If you want the cheap political score, that’s the way to go," he said. But, he warns, economic growth could take a hit if lawmakers aren’t careful. Feehery attributes the GOP’s newfound openness to tax hikes to the rise of Trump-style populism, which has scrambled traditional party lines—country-club Republicans are out, working-class Republicans are in, and suddenly the idea of taxing millionaires doesn’t sound so taboo.

Heye echoes the sentiment, noting that the old GOP fear of raising taxes died out along with the era of George H.W. Bush and his infamous "Read my lips" promise. Today, the party’s priorities have shifted, and so have its red lines.

Officially, House GOP leaders still say they oppose raising taxes on anyone, but they’re under pressure to balance Trump’s budget goals—including new tax breaks for tipped and overtime wages—while also delivering the big spending cuts conservatives demand. House Freedom Caucus Chair Andy Harris says he’d rather cut spending, but if that’s not possible, a millionaire tax might be back on the table. Rep. Dan Meuser has floated a new top rate of 38.6%, arguing that any tweaks should support economic growth and fiscal responsibility.

Former Vice President Mike Pence, meanwhile, is urging Republicans to hold the line and keep the 2017 tax cuts permanent, branding them the "Trump-Pence tax cuts." With opinions all over the map, some GOP lawmakers admit their colleagues’ reactions are mixed at best.

Not every old-school Republican is convinced. One former member called tax hikes a "short-term high" that ultimately harm conservative values, and warned against straying too far from fiscal orthodoxy.

Looking at the broader picture, Marc Goldwein of the Committee for a Responsible Federal Budget says it’s "healthy" for the GOP to debate fresh fiscal ideas—even if he’s skeptical that raising tax rates is the best solution. He cautions that lawmakers shouldn’t chase policies that look good on paper but do more harm than good in practice.

With the party base shifting underfoot, the debate over taxing the rich is a sign of just how much the GOP is changing—and how little is truly off-limits these days.