The ongoing debate within the Republican Party over taxing millionaires is gaining momentum as Congress delves into drafting a significant package for President Donald Trump’s upcoming bill. While Trump has expressed some openness to taxing wealthier Americans, the Republican establishment remains resistant, viewing any tax hike as contradicting their goal of reducing government involvement. This ideological clash is pitting traditional tax-cutters like Newt Gingrich and Grover Norquist against rising populist-nationalists led by figures like Stephen Bannon, who advocate for a millionaire’s tax as a means to address income inequality and generate federal revenue.

The proposed package, central to the GOP’s domestic policy agenda, aims to extend the 2017 tax cuts and introduce new tax breaks campaigned for by the president. With the current top individual tax rate at 37%, discussions are swirling around potentially raising it to 40% for households earning $1 million or more, generating an estimated $300 billion in revenue over a decade. However, the prospect of a tax hike is met with vehement opposition from traditional tax-cut proponents who warn of dire consequences for the party’s unity and electoral prospects.

As Republicans navigate internal divisions and seek ways to fund the proposed tax bill, tensions escalate over potential cuts to federal programs and the ballooning cost of the package, which could exceed $5 trillion. With Democrats poised to oppose the bill over anticipated cuts to federal programs, Republican unity is crucial for passing the legislation through Congress. The outcome of this debate will not only shape future tax policy but also test the resilience of GOP orthodoxy in the face of evolving political dynamics and competing ideological factions.