Trump Urges Tax Hikes on Rich to Fund 'Big, Beautiful Bill' Amid GOP Pushback

President Donald Trump is urging House Republicans to craft a tax package that balances populist appeal with fiscal responsibility, as the deadline for his self-described "big, beautiful bill" approaches Memorial Day. The plan’s centerpiece—no taxes on tips—has struck a chord with voters, particularly service workers, but it’s hitting roadblocks. Deficit-conscious Republicans are demanding new revenue to offset the loss, and Trump has floated a surprising solution: raising taxes on the ultra-wealthy.

In a push that’s raised eyebrows among his base, Trump has pressed House Speaker Mike Johnson to consider hiking the top tax rate for individuals earning $2.5 million or more, from 37% to 39.6%. This move could fund the tip tax exemption while appealing to the working-class voters who propelled him to victory. Yet, it’s a tough sell for conservatives, many of whom have long vowed to oppose any tax increases.

Trump, ever the political pragmatist, acknowledged the risks in a Truth Social post, noting the specter of George H.W. Bush’s infamous "Read my lips" pledge, which some blame for his 1992 election loss. With a nod to history, Trump quipped that Ross Perot, not the tax hike, was the real culprit. He signaled flexibility, saying he’d accept a modest increase but warned Republicans against handing Democrats a soundbite.

Complicating matters, a proposed deduction for state and local taxes (SALT) has sparked rebellion among New York Republicans, who threaten to derail the bill. Meanwhile, debates over health assistance and potential Medicare or Medicaid tweaks have drawn sharp accusations. House Budget Committee Chairman Jodey Arrington slammed Democrats for trying to "paralyze" the GOP with fearmongering, while Freedom Caucus Chairman Andy Harris insisted on seeing concrete details before committing.

As the clock ticks, the GOP faces a delicate balancing act: delivering on campaign promises while navigating internal divisions and a polarized political landscape. The outcome could shape Trump’s early agenda and test his ability to unify a fractious party.