Trump's Tax Tango: The Millionaire Dilemma

President Trump wavers on a proposal to increase taxes on millionaires, initially suggesting a rise but later expressing reservations to avoid political backlash. He indicated some openness to the idea, though the move has sparked internal debate within the GOP as they prepare significant tax legislation.

President Donald Trump has backtracked on his earlier proposal to increase taxes on millionaires, hinting at a potential political backlash reminiscent of the Bush-era 'No new taxes' pledge. On Friday, Trump expressed hesitance, fearing political consequences, though he signaled some willingness to pursue the idea.

The president's shifting stance comes as Congress prepares to present a significant tax package. The idea of a higher rate for single filers earning USD 2.5 million or more has stirred internal GOP debates and divided opinions among lawmakers.

Trump views higher taxes on millionaires as a strategy to counter Democratic claims that recent GOP tax cuts favor the wealthy. His internal discussions have reignited the campaign against tax hikes, with figures like Newt Gingrich warning of past election losses caused by broken tax promises.

(With inputs from agencies.)