Trump Rejects Millionaire Tax Hike, Warns of Wealth Flight from U.S.

WASHINGTON — President Donald Trump has made it clear: raising taxes on millionaires is not an option he supports. Speaking from the Oval Office on April 23, Trump argued that such a move would backfire economically, prompting wealthy individuals to leave the country and ultimately decreasing federal revenue.

“I think it would be very disruptive because a lot of millionaires would leave the country,” Trump said. “You’ll lose a lot of money if you do that.”

Although some of Trump’s allies, including former chief strategist Steve Bannon, have shown support for taxing the wealthy, Trump had not taken a firm stance—until now. He has floated alternative revenue sources in the past, even suggesting tariffs could replace income taxes. However, economists continue to warn that tariffs bring in significantly less revenue and often burden lower-income Americans the most.

This announcement comes as Trump enters high-stakes negotiations with Congress over the federal budget. His administration is pushing to extend the sweeping tax cuts implemented during his first term, along with new proposals like eliminating taxes on tips and Social Security benefits. Together, these ideas could cost trillions of dollars.

Democrats in Congress have slammed Trump’s tax agenda, calling it disproportionately favorable to the wealthy while threatening essential programs for working families.

“President Trump and congressional Republicans are raising costs for working people, taking away their health insurance, and threatening seniors’ hard-earned Social Security benefits,” Senate Majority Leader Chuck Schumer said in a letter to Senate GOP leadership. “All while pursuing a multi-trillion-dollar tax cut for the wealthy and claiming it should be free.”

Public confidence in Trump’s handling of the economy appears to be wavering. A recent Pew Research Center poll shows a majority of Americans disapprove of his economic decisions, particularly his aggressive use of tariffs. Nearly 60% expressed concerns about his trade strategies, which have caused both the U.S. dollar and stock markets to fluctuate.

Despite tensions with the Federal Reserve, Trump clarified on April 22 that he does not plan to dismiss Fed Chair Jerome Powell, though he renewed calls for interest rate cuts.

“I haven’t called him,” Trump said when asked about Powell. “I might call him.”

As budget talks heat up and economic indicators point to growing uncertainty, Trump’s firm opposition to taxing the ultra-rich sets the stage for a contentious fiscal battle in Washington.