Trump Wants to... Raise Taxes?

President Donald Trump made an interesting post on his social media platform Truth Social Friday advocating for a heightened tax on the uber-rich.

It was a strange post, as many of his are, because he contradicted himself by saying that Republicans should not do it — but, as an uber rich man himself, agreed that it would be best for lower and middle income workers if they did.

There is no need to examine why Trump would think this is a good idea. It is clear that he wants the government to spend less, with the Department of Government Efficiency (DOGE) chopping down program after program to save the government money. And with other tax cuts on the table, there will likely need to be income coming in from somewhere else to pay for whatever new programs he plans on implementing.

Who better to fork over some cash then the richest folks in the country?

The idea of “taxing the rich” is far from new or unique, but it rarely graduates from an idea to actual reality.

Why would it not be a good idea, as Trump says in his post? Republicans are a safe haven for the rich. They don’t tax them more. Instead, they lighten regulations and reduce tax liabilities.

If they join the Democrats in asking for more money, they might see fewer donations come the next election cycle.

But the tax code has always favored the rich, making it so they have loopholes available for skirting the system. While you and I pay our fair share of income taxes, the richest people in our nation hide money in foreign banks, pour most of their material wealth into assets, and do anything to earn income that the government won’t see as traditional income — including borrow against those assets.

It’s unfair. And neither side has tried hard enough to close that gap in fairness between the haves and the have nots.

So it’s nice to see Trump bring it to light.

Another close-the-gap measure Trump is aiming for is an end to the carried interest loophole, which allows venture capitalists and hedge fund managers a chance to pay capital gains taxes on annual fund profits.

The whole point of a capital gains tax vs. standard income tax is that it forces you to hold an asset for at least one year. It encourages investment in the markets, and rewards you when the asset goes up over time.

The dumbass kid you know from college that somehow figured out how to day-trade is paying income taxes on his net gains from the year. If he’s really good at it, he could pay the top rate — 37% for net earnings of $626,350 or more.

But that really cool guy you always see driving a Rolls Royce around your town? He’s only paying 20% of the $533,400 he sold in long-term assets last year.

Is it fair? Some people will say no. But it’s important to incentivize investment, and it’s fair to reward risk.

It’s unlikely that Trump would ever push for a higher capital gains tax rate, but it’s promising to see him at least mention the idea of the rich seeing a heftier bill come April.

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