Trump Proposes Tax Hike for the Wealthy

JAKARTA – President of the United States, Donald Trump, is reportedly considering raising tax rates for high-income individuals. This move is said to be part of efforts to balance the national budget, particularly to ensure that tax cuts in other sectors do not jeopardize the country's fiscal stability.

According to kontan.co.id, citing a report from The New York Times, the plan includes a new top tax rate of 39.6% for individuals earning at least USD 2.5 million per year (approximately IDR 40 billion) or couples earning USD 5 million annually (around IDR 80 billion). Interestingly, this rate was originally in place before Trump himself lowered it during his first term, from 39.6% down to 37%. Currently, the 37% rate applies to individuals earning more than USD 626,350 per year.

The U.S. government and Congress are currently working on a USD 1.5 trillion legislative package that encompasses major issues including taxation, defense, energy, immigration, and border security. This package is also considered crucial to prevent a potential government default in the upcoming summer.

Trump has also revived discussions around the "carried interest loophole", a tax provision often exploited by investment managers to pay lower taxes. In addition, the idea of increasing taxes on stock buybacks and limiting tax deductions for corporate executives is also under consideration.

Interestingly, although Trump had previously rejected the idea of increasing taxes for the wealthy, he now appears to be shifting his stance. This change is believed to be motivated by the need to maintain fiscal credibility and ensure that priority government programs continue to run effectively. (KEN)