In an effort to balance other proposed tax cuts, U.S. President Donald Trump has proposed a significant increase in taxes for high-income earners. His plan introduces a new 39.6% tax bracket specifically targeting individuals with incomes exceeding $2.5 million annually or couples earning $5 million. If enacted by Congress, this move would restore the top individual income tax rate to its pre-2017 level, reversing Trump’s prior tax cuts. Currently, the highest individual rate stands at 37%. The proposal was conveyed during a phone call with House Speaker Johnson on Wednesday, where President Trump also voiced his intention to eliminate the carried interest tax break for venture capital and private equity fund managers.