Steve Bannon reportedly wants to hike taxes on the richest Americans


Gary Cohn's employment status is the key signal for traders betting Trump's tax reform is still alive

In a scoop, the website reported that Bannon was pushing for a tax hike on the rich to finance middle class and working class cuts.

Further, Bannon has told colleagues in the White House that he wants the highest income tax bracket to "have a 4 in front of it", Axios said.

A senior administration official confirmed to that Bannon is pushing the idea internally and speculated that it could be paired with a deduction for rich Americans who earn their income from sources other than investments.

Today, the top bracket is 39.6 percent for single Americans who bring home $418,401 or more annually and for married individuals filing jointly who make $470,701 or more. Amid debate over healthcare, White House officials were "teeing up an extremely aggressive tax plan", even as Trump's chief economic adviser Gary Cohn and Treasury Secretary Steven Mnuchin were working on efforts focused on slashing corporate tax rates.

The last time the White House successfully passed a major tax reform bill was in 1986 under President Ronald Reagan.

"Cohn has told associates that if tax reform doesn't get done this year, it's probably never going to happen", the report said. It's unclear if the administration is seriously considering reversing course on top earners.

White House strategist Steve Bannon arrives at Joint Base Andrews outside of Washington after a day trip to Lynchburg, Virginia, with President Donald Trump on May 13. The Weekly Standard's Michael Warren reports that there are no plans for the White House to modify its original proposal or support raising the top marginal rate.

Extend tax cuts to 15 years: This would require some wiggling with the Congressional Budget Office, but the administration reportedly wants to extend the cuts past a 10-year window.

In another action that Democrats say is a gift to the wealthy, the president wants to get rid of the estate tax - the heavy fee the government imposes on the deceased's assets when they are transferred to a relative.

While Bannon's idea may at first appear anathematic to the GOP's long-held tax positions and policies, state-level Republicans in South Carolina, Tennessee and Kansas have recently increased taxes, The New York Times reported Sunday.

Latest News