Trump's "weak tea" tax on the rich

Donald Trump is considering a tax increase targeting the wealthiest Americans, specifically those earning over $2.5 million annually. This proposal aims to create a new tax bracket with a 39.6% rate, mirroring the top rate before his 2017 tax cuts. The move is surprising given the Republican Party's history of tax cuts for the rich and its shift towards representing the working class. The revenue generated would potentially fund tax cuts for the middle and working classes, and protect Medicaid. The increase would only impact a small percentage of taxpayers, estimated at 0.1% to 0.2%. The new tax would apply to ordinary income, not capital gains, which disproportionately benefits the wealthy. The White House claims Trump is willing to pay more to help the poor and middle class. However, the actual impact would be limited, raising relatively little revenue compared to the cost of potential tax cut extensions. Experts believe the proposal would have a minimal effect, possibly raising only a small amount of money. Ultimately, the plan is considered weak and unlikely to significantly impact the wealthy or the national budget.