Senate Majority Leader John Thune (R-S.D.) expressed his reservations about President Trump’s tax proposal earlier this week. However, he remains open to hearing the president’s plans, even regarding potential tax increases on high earners.
“I really don’t want to see anyone’s taxes go up,” Thune remarked during an interview on CNBC’s “Squawk Box” on Friday.
“Our focus is on lowering taxes rather than raising them,” he reiterated to host Joe Kernen, who acknowledged that Trump’s approach isn’t exactly traditional for a Republican.
“He’s not your conventional president. People tend to vote for someone who is different, and I believe his policies showcase that,” Thune noted.
Thune mentioned that Trump has placed significant importance on working Americans, highlighting his proposal related to taxing overtime wages and Social Security benefits.
According to Thune, Trump aims to adjust tax exemptions affecting “people just trying to make a living in this country.”
Earlier in the week, Trump had instructed Speaker Mike Johnson (R-La.) to propose a new income bracket imposing a 39.6% tax rate on those earning over $2.5 million annually.
On Friday, Trump seemed to reconsider, stating, “Republicans probably shouldn’t do that, but if they do, it’s fine!”
Thune emphasized that Johnson would be the first to gauge whether this contentious plan could gain traction in the House, where a number of GOP lawmakers are against tax hikes for the wealthy, arguing it could stifle entrepreneurship.
“It all starts in the House,” Thune pointed out. “They need to figure out a way to navigate this effectively.”
He stressed the importance of making several business tax provisions permanent—things like bonus depreciation, interest deductions, and costs related to research and development.
“Making these provisions permanent is crucial, so businesses have the ability to plan accordingly,” he said.
When Kernen inquired about the potential exemption for small businesses that report taxes under individual tax laws from this new high tax bracket, Thune acknowledged that it was a possible option.
“They might carve out pass-through businesses if this comes to pass,” he mentioned.
“From a business perspective, growth is what you want,” he said. “I believe the president is trying to support working Americans who are doing their best to provide for their families.”
