Mike Pence Urges Trump to Avoid Tax Increases on Wealthy Americans

Mike Pence Urges Trump to Avoid Tax Increases on Wealthy Americans

Former Vice President Mike Pence has a clear message for his former boss, President Donald Trump. He strongly advises that Trump should refrain from raising taxes on wealthy Americans.

Pence served alongside Trump during his first administration, and he is concerned about the implications of potential tax increases. The 2017 Tax Cuts and Jobs Act, which represents a significant legislative achievement from Trump’s first term, is set to expire this year unless Congress acts to extend it.

For weeks, discussions have unfolded within the Trump administration and among congressional Republicans regarding the possibility of allowing tax reductions for high earners to sunset. This consideration emerges as a strategy to finance further tax cuts and other expensive priorities aligned with Trump’s ambitions for a second term.

The Push for Higher Taxes

During a recent phone call, President Trump expressed to House Speaker Mike Johnson the need to increase taxes for individuals making more than $2.5 million annually. He also discussed the closure of the carried interest loophole as part of this reconciliation process, according to sources familiar with the situation. This development comes amid increasing scrutiny over the economic direction of Trump’s policy proposals.

Reports indicate that Trump is contemplating an increase in the tax rate on individuals earning $2.5 million or more, potentially raising it from 37% to 39.6%. Nevertheless, Pence, a consistent advocate for fiscal conservatism throughout his political career, stands firmly against any hike in tax rates for these individuals.

Pence’s Warning on Tax Policy

Pence articulated his concerns, asserting that any inclination to implement a so-called millionaires tax would significantly impact small business owners across the United States. He stated, “Any suggestion that I’ve heard among some in and around the administration that we raise the top margin rate, the so-called millionaires tax, would be an enormous tax increase on small business owners across America. It needs to be opposed.” His warning underscores the potential repercussions for the economy and business landscape.

In a recent interview with Fox News Digital, Pence elaborated further, noting that most individuals who file taxes at the million-dollar level are often business owners. They file their taxes as individuals but reinvest their earnings back into their businesses. Thus, an increase in the top marginal tax rate would translate to a detrimental tax hike on small businesses.

Pence urged the permanence of the tax cuts established during the Trump-Pence era. He believes that maintaining these tax benefits will lay a solid foundation for economic growth in the future. “Let’s make all the Trump-Pence tax cuts permanent. That’s a way to really lay a foundation to grow the economy in the days ahead,” he asserted.

A Reflection on Trump’s Leadership

Pence’s remarks came during an interview in Boston, shortly after he received the John F. Kennedy Profiles in Courage award. He took the opportunity to commend Trump for his achievements, particularly highlighting the significant electoral victory from the previous November. He credited Trump with preventing the country from falling under another liberal Democratic administration.

In expressing his admiration for Trump, Pence acknowledged the strides made in various policy areas, including border security and military recruitment. He stated, “I give President Trump all the credit in the world for an historic victory last November, and for sparing the country one more liberal Democrat administration.”

However, Pence raised concerns about certain policy directions, warning that straying from conservative principles might undermine Trump’s legacy and the party’s future. He emphasized the necessity to adhere to established conservative values, which he believes are crucial for national prosperity.

Pence’s Commitment to Conservative Principles

Pence concluded with a passionate assertion of his dedication to promoting traditional conservative values, advocating for strong defense, leadership on the global stage, reduced government intervention, lower taxes, and the right to life.

“I really do believe that for prosperity … for the success of our country, we need to stick to those time-honored principles,” Pence affirmed. He aims to continue being a voice advocating for these ideals, ensuring they remain at the forefront of political discourse.