Days after privately urging Republicans to tax the rich, Trump publicly signals retreat — but leaves the door open.
President Trump on Friday softened his private push for tax increases on the wealthy, retreating in a social media post from proposals he recently floated to Republican leaders as part of a sweeping domestic policy bill.
“The problem with even a ‘TINY’ tax increase for the RICH, which I and all others would graciously accept in order to help the lower and middle income workers,” Trump wrote on Truth Social, “is that the Radical Left Democrat Lunatics would go around screaming, ‘Read my lips,’ the fabled quote by George Bush the Elder that is said to have cost him the Election. Republicans should probably not do it, but I’m OK if they do!!!”
The post came just two days after Trump privately urged House Speaker Mike Johnson to raise taxes on individuals earning more than $2.5 million annually and to eliminate the carried interest loophole — a long-criticized provision that allows private equity and hedge fund executives to pay capital gains rates (around 20%) on their profits, significantly lower than top income tax rates.
The suggestion threw a wrench into ongoing negotiations over a GOP tax and spending package. Party leaders are already struggling to bridge internal divides over how to pay for new tax cuts — including potential reductions to Medicaid and other safety-net programs. Trump’s unpredictable demands, and his tendency to publicly reverse course, have further complicated the calculus.
No Re-Election Risk, But Political Blowback Looms
Trump is not facing reelection — unlike George H.W. Bush, whose broken “no new taxes” pledge haunted his 1992 campaign — but the political risks remain. Republicans are already taking heat over Trump’s first months back in office, and many lawmakers are wary of casting votes that could be turned against them in the 2026 midterms.
Trump’s Truth Social post left his position deliberately ambiguous. While warning Republicans off the tax hike, he also offered tacit approval if they proceed — hedging his bets as the GOP hashes out its final proposal.
Behind the Scenes: Norquist and the Pledge
Trump also called Grover Norquist this week to win support for the tax proposal. Norquist, a longtime anti-tax advocate, is the architect of a pledge that binds Republican candidates to oppose tax increases. Some of Trump’s aides reportedly told Norquist the changes might not technically violate that pledge, though Norquist remained unconvinced.
In an interview, Norquist declined to comment on Trump’s remarks but made his own stance clear.
“Raising the top rate will kill jobs,” he said. “Raising the top rate will slow the economy. And raising the top rate will mostly hit small businessmen and women who have pass-through corporations.”
He reiterated that his group, Americans for Tax Reform, hasn’t taken a position on any hypothetical proposal and won’t unless it sees details in writing. He echoed similar sentiments in a post on X (formerly Twitter) the day of the call.
A Moving Target
For Republicans crafting a legislative agenda, Trump’s shifting signals have been hard to pin down. One day he’s urging higher taxes on the wealthy; the next, he’s warning it could backfire. The ambiguity has left GOP lawmakers — especially those in swing districts — caught between a volatile leader and a skeptical electorate.
Despite the confusion, Speaker Johnson and other Republican leaders insist they’re pressing ahead with drafting the package. Whether it includes Trump’s suggested tax increases — or any revenue offsets at all — remains uncertain.
