President Donald Trump expressed concern over a proposed tax increase on high earners, arguing that such a move would drive wealthy Americans to relocate overseas. He warned reporters in the Oval Office that raising the top income tax rate to 40 percent could trigger a mass exodus of millionaires from the US, citing past examples where countries with similar policies experienced significant wealth outflow. These comments come amidst ongoing discussions within the GOP about enacting a 40 percent income tax on earnings exceeding $1 million to fund an economic plan aimed at reducing taxes on tips and overtime pay. Proponents argue that this measure could counter Democratic claims that Republicans prioritize the wealthy over low-income families. However, House Speaker Mike Johnson expressed opposition, asserting his party’s long-standing stance against such a tax. Anti-tax groups within the GOP have also raised concerns, with former speaker Newt Gingrich citing Trump’s warnings about potential negative impacts on Republican candidates in upcoming elections. The proposal to impose a 40 percent income tax rate on earnings above $1 million is estimated to generate $400 billion over ten years, potentially enhancing the child taxation credit by an average of $500 annually. However, some lawmakers see this as a potential tool for budgetary purposes. Though the current top tax bracket stands at 37 percent, it’s set to revert to 39.6 percent when Trump’s 2017 tax law expires at the end of 2025 unless Congress intervenes. This debate coincides with Republicans seeking a campaign message before the upcoming midterm elections. Opponents argue that this higher rate could inadvertently encourage wealth migration, while proponents counter that it can help offset potential attacks from Democrats regarding cuts to social programs and funding for government initiatives.