Trump's internal millionaires' monologue
President Trump has been negotiating with himself on a millionaires' tax: He's for it at the $2.5 million level, after being against it at $1 million.
Why it matters: Negotiating with his own party may be easier. House Speaker Mike Johnson (R-La.) will tell Trump on Friday that the House will deliver on the president's tax priorities, according to a congressional aide.
Senate Finance Chair Mike Crapo (R-Idaho) admitted he's "not excited about the proposal," before quickly adding, "There are a number of people in both the House and Senate who are."
"If the president weighs in in favor of it, then that's going to be a big factor that we have to take into consideration as well," he said on Hugh Hewitt's radio show.
Driving the news: Trump told Johnson over the phone Wednesday that the House should increase the top rate from 37% for individuals making $2.5 million and up ($5 million for married couples).
"This is to pay for working- and middle-class tax cuts that were promised, and protect Medicaid," an administration official told Axios.
Trump is also insisting that carried interest be treated like regular income, which would amount to a tax increase for the private equity industry.
Between the lines: Just as Trump is calling for higher taxes on the wealthy, blue state Republicans are demanding that Trump lower them by increasing the SALT cap.
New York Republicans are now rejecting lifting that cap from $10,000 to $30,000. Some lawmakers want to go as high as $62,000.
Flashback: Trump told Time Magazine in April that "I actually love the concept," or higher taxes on the wealthy.
"But I don't want it to be used against me politically, because I've seen people lose elections for less, especially with the fake news," he said.
Zoom in: As Republicans look at the math of Trump's "one big, beautiful bill," they are confronted with a stark reality: They are short on revenue and long on spending.
Speaker Johnson is committed to a "ratchet" system, where he can only pass $4 trillion in tax cuts if he can find $1.5 trillion in savings.
The bottom line: Since the "Reagan Revolution," Republicans have been preternaturally predisposed to hate taxes. Or, as House Majority Leader Steve Scalise said when the millionaire's tax was floated in April.
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