Short Slams Potential GOP Tax Hike on Wealthy, Cites Economic Concerns

Marc Short, a prominent figure from President Donald Trump’s initial administration, is strongly opposing potential moves by Republicans to increase taxes on affluent Americans. Short, who served as chief of staff to former Vice President Mike Pence and played a pivotal role in the negotiations surrounding the 2017 Tax Cuts and Jobs Act (TCJA), argues that such a measure would be economically unsound and counterproductive.

Short, who also held the position of director of legislative affairs in Trump’s White House from 2017 to 2018, voiced his concerns, stating, "Raising taxes on America’s highest earners and biggest job creators makes no sense. I don’t understand why there are some inside the current administration who are pushing Congress to raise the top rate, because again, these are America’s job creators." He further emphasized the potential impact on small businesses, noting, "So many small businesses file taxes as individuals. And so you’re actually going to be raising taxes on many small businesses, not just individuals."

Short’s remarks come amidst discussions among Congressional Republicans regarding a comprehensive legislative package, tentatively dubbed Trump’s "big, beautiful bill," aimed at advancing his policies across various domains, including tax, border security, immigration, energy, defense, and national debt. The tax policy component of this bill is projected to be the most financially demanding, prompting House negotiators to identify areas for cost reduction, targeting at least $1.5 trillion in offsets for new spending.

A source close to Trump’s perspective revealed to Fox News Digital that he is considering allowing the individual tax rate for those earning $2.5 million or more to revert from the current 37% to the pre-2017 level of 39.6%. This adjustment, according to the source, would help finance significant tax cuts for the middle and working classes, as well as safeguard Medicaid funding.

The TCJA, a landmark achievement of the Trump administration, reduced the tax rate for the top income bracket, currently set at $609,350 for single filers, to 37%. This tax cut is slated to expire at the end of the current year. The proposal to create a new, higher tax bracket for individuals with significantly higher incomes would serve to fund the extension of the 2017 tax cuts and support Trump’s new policy priorities, including the elimination of taxes on tips, overtime pay, and retirees’ Social Security checks.

However, Short dismissed these new Trump priorities as politically motivated sweeteners lacking long-term vision. "I feel like some of the administration’s new requirements are somewhat gimmicky. I’m not sure many Americans who earn their income based on tips are even paying taxes on those tips right now. And I think we should begin to extend that to say no tax on overtime," he stated.

Short cautioned that these proposed changes would create "a lot of additional hurdles for businesses to comply with." He added, "I think the no tax on Social Security, it seems like what we’re trying to do is different from 2017, when we passed the Tax Cuts and Job Act. We tried to simplify the tax code, make it flatter and fair for all Americans, as opposed to creating carve-outs for certain constituencies."

Fox News Digital has reached out to the White House for a response to Short’s remarks.

Short’s concerns are echoed by several conservative groups, including the Heritage Foundation and Americans for Prosperity, who are wary of a potential tax increase on the wealthy.

Richard Stern, director of the Hermann Center for the Federal Budget at the Heritage Foundation, expressed the group’s opposition to raising tax rates to 40% or higher. "Congress needs to get its fiscal house in order, but it must do so by tightening its own belt, not by forcing American taxpayers to tighten theirs. A higher top tax rate would be counterproductive, discouraging hard work and entrepreneurship," Stern stated.

Americans for Prosperity chief government affairs officer Brent Gardner issued a statement emphasizing that "Raising taxes on any American should be completely off the table."

The debate surrounding potential tax increases on wealthy Americans highlights the ongoing tension between competing economic philosophies and priorities within the Republican party. While some advocate for maintaining low tax rates to incentivize economic growth and job creation, others argue that targeted tax increases can help fund essential government programs and reduce the national debt. The outcome of this debate will have significant implications for the future direction of tax policy and the overall economic landscape.