Trump’s Millionaire Tax Hike Plan Sparks GOP Civil War Over Fiscal Future

President Donald Trump’s latest fiscal proposal has ignited a fierce debate within the Republican Party, threatening to fracture its unity over a potential tax hike targeting America’s ultra-wealthy. The plan, dubbed a “big, beautiful bill” by Trump, aims to fund sweeping tax breaks for middle and working-class families by raising the top income tax bracket to 39.6% for single filers earning over $2.5 million annually.

Traditional GOP stalwarts are digging in their heels, warning that any tax increase—however targeted—sets a dangerous precedent. “It’s a slippery slope,” one senior House GOP aide remarked, voicing fears that future administrations could extend hikes to middle-income earners. Rep. Eric Burlison (R-Mo.) echoed this, arguing that higher taxes stifle innovation and that the real issue is runaway government spending, not insufficient revenue.

Yet, Trump’s populist allies, like House Freedom Caucus Chairman Andy Harris (R-Md.), see the hike as a pragmatic trade-off. Harris suggested reinstating pre-2017 tax rates for high earners to bankroll Trump’s agenda, which includes eliminating taxes on tips, overtime pay, and Social Security for retirees. Trump himself mused on Truth Social about the idea, acknowledging its risks but signaling openness to it, even referencing George H.W. Bush’s infamous “Read my lips” tax pledge that cost him re-election.

The proposal comes as the 2017 Tax Cuts and Jobs Act (TCJA) nears its 2026 expiration, with Republicans eager to extend its benefits while advancing new policies via budget reconciliation—a maneuver allowing passage with a simple Senate majority. But with razor-thin congressional margins, GOP leaders face a tightrope walk to unify their party by Memorial Day, aiming for a final bill by July 4th.

Conservative groups like The Heritage Foundation and Americans For Prosperity are piling on pressure, urging Republicans to reject tax hikes and focus on slashing spending. Meanwhile, some GOP voices, like Rep. Marlin Stutzman (R-Ind.), are open to the idea if it reduces national debt rather than fueling new expenditures.

As the House Ways & Means Committee prepares to hammer out details next week, the GOP’s internal tug-of-war underscores a broader shift: Trump’s growing appeal to working-class voters is forcing the party to rethink its anti-tax orthodoxy. Whether this gamble pays off—or fractures the party—remains to be seen.