Donald Trump by Gage Skidmore https://flic.kr/p/LAM6bs
While answering reporter questions in the Oval Office today, President Trump described the damage that would ensue if a so-called “millionaire tax” were imposed on Americans. Such a tax rate hike would directly hit small and mid-sized businesses across the country.
Reporter: “Would you support a millionaire tax?”
TRUMP: “I think it would be very disruptive because a lot of the millionaires would leave the country. You know in the old days they left states. They’d go from one state to the other. Now with transportation so quick and so easy, they leave countries. You lose a lot of money if you do that. And other countries that have done it have lost a lot of people. They lose their wealthy people. That would be bad. Because the wealthy people pay the tax. Okay?”
Click here for a video clip of the above exchange.
This is the second day in a row Trump poured cold water on the idea of a tax rate increase.
On Tuesday, Trump said:
“George Bush said, ‘READ MY LIPS, NO NEW TAXES,’ then proceeded to give a rather small Tax increase, and was obliterated. While I love the idea of a small increase, the Democrats would probably use it against us, and we would be, like Bush, helpless to do anything about it! So if you can do without it, you’re probably better off trying to do so. We don’t need to be the ‘READ MY LIPS’ gang who lost an Election, for no reason!”
According to beltway publications, a few moderate and anonymous squishes spent 27 days trying to convince President Trump to impose a so-called “millionaires tax” — a new or higher top income tax rate such as that proposed by Kamala Harris.
Yes, they wanted President Trump to break his campaign promise of across-the-board permanent Trump tax cuts.
Trump’s point about high tax rates driving taxpayers away is demonstrated by the abysmal performance of the state-level “millionaire taxes.”
Let’s take a look at the four states that impose a “millionaire’s tax” and see how they are doing and see if it is wise to take this concept national.
The four states with a “millionaires tax” are: New York, New Jersey, Massachusetts, California. All four are deep blue states dominated by radical left progressives.
They rank dead last in the U-Haul growth index. Residents are fleeing these states in droves.
In fact, the four states rank perfectly dead last in the U-Haul growth index. U-Haul tracks the net gain or loss of one-way moves for all 50 states.
Look who is ranked in the basement, literally taking up the bottom four spots: New York, New Jersey, Massachusetts, California, as shown in a screenshot from the Index:
The ten best performing states in the U-Haul index all have significantly lower income tax rates than the index’s ten worst performing states:
Average Top State Income Tax Rate for U-Haul Top 10: 2.6%
Average Top State Income Tax Rate for U-Haul Bottom 10: 7.3%
“There are four states with a ‘millionaires tax,'” said Grover Norquist, president of Americans for Tax Reform “Those states are losing people.”
They rank in the absolute bottom five in the Tax Foundation State Business Tax Climate Index. Massachusetts is ranked 46th, California is ranked 48th, New York is ranked 49th, and New Jersey is ranked 50th, as shown in a screenshot from the Index.
They rank among the top 10 most expensive states in the nation. California is ranked the 2nd most expensive state, Massachusetts is ranked 4th most expensive, New Jersey the 6th most expensive, and New York the 7th most expensive.
They have terrible rankings in the Freedom in the 50 States Index. In the “Overall Freedom” ranking — a combination of personal and economic freedoms — New Jersey ranks 47th, California ranks 48th, and New York ranks 50th. Massachusetts ranks 26th (what color ribbon do they get for 26th place?)
They are projected to lose five electoral votes after the 2030 census. California is projected to lose three electoral votes and New York is projected to lose two.
Does a “millionaire’s tax” sound like a policy that should be emulated on the national level?
Does a “millionaire’s tax” sound like a policy that will help America beat China?
Thankfully, President Trump wants permanent across the board Trump tax cuts for all.
WIDESPREAD CONSERVATIVE OPPOSITION TO A TAX RATE HIKE
Ninety Small and Mid-Sized Manufacturing, Machinist, Builders and Contractors Groups: “As long-time Main Street champions, we encourage you to stand strong and oppose any effort to increase income tax rates, including recent proposals to raise the top individual rate to 40 percent.”
House Speaker MIKE JOHNSON: Asked if he supports a tax rate increase, Johnson said: “I’m never for increasing taxes, ever.”
Speaker JOHNSON also said: “I mean we are the Republican party and we are for tax reduction for everyone.”
House Majority Leader STEVE SCALISE: Asked if he supports a tax rate increase, Scalise said: “No. No. No.”
House Majority Whip TOM EMMER: Asked if he supports a tax rate increase, Emmer said:“hahhahahahha no.”
Congresswoman ELISE STEFANIK: “We do not support raising taxes. The Republican Party stands for cutting taxes. President Trump supports cutting taxes; he has said that in rallies all across the country.”
CONGRESSWOMAN BETH VAN DUYNE (R-Texas): “I don’t support raising taxes. We do not have a revenue generating problem in the U.S. — we have a spending problem in the U.S.”
Congressman BUDDY CARTER (R-Ga.): “Look, we can do this without raising taxes on anyone.”
Congressman TIM MOORE (R-N.C.): “I do have some concerns though about this talk of adding additional tax increases. I don’t think that’s appropriate. I believe frankly that we have a spending problem and not a tax problem.”
SENATOR TED CRUZ: “I think it is a mistake to raise taxes, and I don’t believe Republicans are going to do that.”
SENATOR DAVID MCCORMICK (R-Pa.): “We’ve got to reel in the spending,” McCormick said. “That’s going to require some tough choices. But we can’t do that by raising taxes, which slows the economy and hurts working families.”
Trump ally LARRY KUDLOW on a tax rate hike: “This would be among the top three dumbest things I’ve ever heard.”
KUDLOW also said: “Small business pays the top income tax rate. So if these guilt-ridden Republicans in the White House and Capitol Hill — who think they are such political geniuses and really aren’t — if they think they are penalizing wealthy people, they might take a more careful look at the tax code and realize they would actually be punishing small businesses and wholly owned family enterprises. How stupid would that be? It would be plenty stupid.”
Trump ally NEWT GINGRICH on the idea of a tax rate increase: “That would be madness and would defeat the bill.”
GINGRICH also said: “Speaker Mike Johnson and other Republicans must remain vigilant against any effort by misguided members to raise tax rates in the final bill. This is historically important and could have huge political consequences.”
Americans for Tax Reform President GROVER NORQUIST: “President Trump is not going to allow the top rate for income taxes to be increased. That is a direct hit on small businesses.” “There was a letter that went to the hill from 90 trade associations that represent small businesses pointing out that Sub-chapter S corporations that pay through the individual rate would be badly hit. You read the list: This is a list of MAGA-supporting industries. The national roofing contractors, the precision metal formers, the association of builders and contractors, heating, air conditioning and refrigeration. These are the people who make America work. President Trump is not going to get talked into” a tax rate increase.
ART LAFFER: “That we are even talking about a tax rate increase on the top income earners is silly. Can you imagine that conversation appearing a month ago. It makes no sense whatsoever. Trump doesn’t want to raise the highest tax rates.”
DEROY MURDOCK: “Such a GOP-sponsored tax increase would be an excellent tool — provided that Republicans wish to splinter their ranks, sink President Donald J. Trump’s Big, Beautiful Bill, slow the economy, and sandbag themselves in the 2026 midterm elections.”
KIM STRASSEL: “It’s a grave disservice to Mr. Trump politically and economically. For starters, Mr. Trump during last year’s campaign promised dozens of times some variation on ‘permanent income-tax cuts all across the board.’ It’s a feckless team that attempts to maneuver a president into a George H.W. Bush ‘read my lips’ moment. Mr. Trump won the election in no small part because voters believed he would do what he said.”
Independent Women’s Forum Chairman HEATHER HIGGINS:“We do not have a revenue problem, we have a serious spending problem. Any discussion of hiking tax rates is counterproductive to solving the real problem.”
Job Creators Network CEO ALFREDO ORTIZ: “Raising taxes on successful small business pass-throughs is a terrible idea, and it would threaten Trump’s Main Street resurgence. Republicans should take advantage of their Congressional majority to extend and expand the Tax Cuts and Jobs Act for everyone, including the most successful small businesses and individuals.”
Senator JOHN KENNEDY (R-La.): “I’m not a big believer in envy taxes. I don’t believe in making tax policy on the basis of class warfare.”
House Ways and Means Chairman JASON SMITH: “The way you provide tax relief is, you cut tax rates.”
Heritage Foundation Visiting Senior Fellow and Trump ally STEVE MOORE: Noting that American small businesses would bear the burden of a tax rate hike, Moore said: “That would have an incredibly negative effect on the economy. Those are the job producers.” “These are the people who create the jobs in America — we are going to raise their taxes, Republicans are? Come on, guys, we do not raise tax rates.”
STEVE MOORE also said: “Raising the business or personal tax rates ensures a civil war on the right. Conservatives will then be routed in the midterm elections – and they would deserve it. So don’t go there. You’re playing right into the hands of Chuck Schumer and AOC.”
Club for Growth Vice President of Government Affairs SCOTT PARKINSON: “Club for Growth does not believe a bill can pass the House of Representatives if the top rate is increased from 37% to the Obama-era rate, 39.6%.”
Club for Growth President DAVID MCINTOSH: “Keeping the top rate at 37% is a red-line and Club for Growth will issue a key-vote alert to Members of Congress opposed to any legislation that attempts to increase the top individual marginal tax rate by any amount.”
American Commitment President PHIL KERPEN: “Putting a hike in the top income tax rate into what everybody thought be the Trump tax CUT bill is absolute madness. Not only would it destroy the Republican brand, but it would risk collapsing the bill and letting taxes go up on everyone. And for what? It would raise little or no revenue. It’s a trap.“
Center for a Free Economy President RYAN ELLIS: Regarding the prospect of a tax rate hike passing a GOP congress: “Ain’t gonna happen. Any bill which has a top marginal personal income tax rate north of 37 percent would fail in either the U.S. House of Representatives or the U.S. Senate.”
NATIONAL REVIEW EDITORIAL: “If this is a trial balloon, it doesn’t even deserve to achieve enough altitude to get properly shot down.”
National Association of Manufacturers President and CEO JAY TIMMONS: “When you are talking about higher taxes on individuals — as some people are suggesting — what you are talking about is the 90% of members of the National Association of Manufacturers. We’ve got 14,000 members, who are small businesses. Who are family owned. That is what will get hit the worst: small businesses. And we don’t want to see that happen.”
RUTHLESS co-host JOSH HOLMES: On the notion of anyone in the GOP supporting a tax rate increase: “That’s not populism it’s an advancement of progressive left’s agenda.”
LARS LARSON: “If you push the top federal rate to 40%, and then you say if you are self-employed, then add in 15% for Social Security and Medicare self-employment tax, that takes you to 55%.” “How many people are going to say that’s a fair rate of taxation?” “They are playing those games and trying to undermine the President.”
PATRICK BET-DAVID: “If they do touch increasing tax rates on business owners, they are not going to have a lot of happy people there if that were to take place.”
Fox Business Network host David Asman: “From 1981 to 1987, Reagan cut the highest tax rate from 70% to 28%. We ended up with 7 fat years…until George H Bush broke his pledge and RAISED rates. The economy tanked and Bush lost. Now some RINOs are suggesting Trump do the same. This could save Dems from self destruction.”
————————-
In summary, raising the top tax rate to 39.6% is a Kamala Harris proposal. She lost the election to President Trump. No need to adopt her tax hike.
