According to new report by Intercept, White House chief strategist Steve Bannon wants to see a 44% tax rate on Americans earning more than $5 million. This would be a significant increase from the already high 39.6% tax top bracket in place.
Though it drastically pushes against Republican orthodoxy, the proposal to increase taxes on the wealthy to pay for middle class tax cuts would align with Bannon's populist leanings. The former Breitbart News chairman, according to Axios, has been pushing for the hike for some time, allegedly telling colleagues earlier this month that he wants the top tax bracket to "have a 4 in front of it."
In addition to not jiving with most congressional Republicans, it also clashes with President Trump's past proposals.
In a proposed tax plan released in April, the administration laid out tax cuts across the board, what CNBC said could be the "biggest tax cut for individuals since the Reagan administration." The plan cuts the seven-bracket system to three; 35% on the wealthiest (2% higher than Trump's campaign proposal), and two lower brackets of 25% and 10%.
But Trump has seemingly left the door open to an increase since then.
"If there’s upward revision it’s going to be on high-income people,” the president told The Wall Street Journal last week.
Another tax question that remains unanswered is if the Trump Administration will close the carried interest loophole as he campaigned.
So which will win out? The cuts President Trump ran on? Or the populist push from the Bannonites within the White House?