Pence Advises Trump to Maintain 2017 Tax Cuts for Wealthy Individuals

Mike Pence urgently cautions President Trump against allowing the 2017 tax cuts for wealthy Americans to expire, warning the move would devastate small businesses nationwide.

Key Takeaways

Former Vice President Mike Pence is advocating for the continuation of the 2017 Tax Cuts and Jobs Act, particularly for high-income earners.
Pence warns that allowing tax rates to increase from 37% to 39.6% for those earning $2.5 million or more would significantly harm small business owners.
The Trump-Pence tax cuts from 2017 are set to expire unless Congress takes action to extend them.
President Trump and some Republicans are reportedly considering letting tax cuts for wealthy Americans expire to fund other priorities.
Pence recommends making all the Trump-Pence tax cuts permanent to foster economic growth.

Pence Champions Fiscal Conservatism Against Potential Tax Increases

Former Vice President Mike Pence has made a direct appeal to President Donald Trump regarding tax policy as discussions intensify about the future of the 2017 Tax Cuts and Jobs Act. In recent statements to Fox News Digital, Pence specifically addressed proposals to allow tax cuts for wealthy Americans to expire. The former vice president’s comments come at a crucial moment as the landmark legislation, considered a signature achievement of Trump’s first term, approaches its sunset date unless Congress takes steps to extend the provisions.

“Former Vice President Mike Pence tells Fox News Digital that raising the tax rate on the wealthy ‘would be an enormous tax increase on small business America’.”

Pence’s concerns center specifically on President Trump’s reported consideration of increasing the tax rate for individuals earning $2.5 million or more annually, which would raise the current 37% rate to 39.6%. While this might appear to target only the extremely wealthy, Pence argues the impact would extend far beyond individual high earners to affect numerous small business enterprises throughout the country, many of which file taxes under individual rather than corporate tax codes.

Small Businesses at the Heart of Tax Policy Debate

The former vice president emphasized that what some might frame as a “millionaires tax” would actually create substantial financial pressure on small business owners across America. Many small businesses operate as pass-through entities, with their profits taxed at individual rates rather than corporate rates. This structure means that tax increases targeting high-income individuals directly affect business owners who report business income on their personal tax returns, potentially limiting capital available for business expansion, hiring, and investment.

“Any suggestion that I’ve heard among some in and around the administration that we raise the top margin rate, the so-called millionaires tax, would be an enormous tax increase on small business owners across America. It needs to be opposed,” Pence said.

Instead of allowing any portion of the 2017 tax cuts to expire, Pence advocates for permanence across all provisions of the Trump-Pence tax package. This stance aligns with traditional Republican fiscal policy that prioritizes lower tax rates as a mechanism for stimulating economic growth and job creation. Pence contends that maintaining these tax cuts provides businesses with the certainty needed for long-term planning and investment decisions that ultimately benefit the economy at large.

Broader Conservative Principles at Stake

While focusing primarily on tax policy, Pence’s comments reflect broader concerns about maintaining conservative economic principles. The former vice president praised numerous achievements from their joint administration but expressed reservations about some recent policy directions being considered. His position on taxes appears to be part of a larger commitment to what he describes as time-honored conservative principles that prioritize limited government and economic freedom.

“Let’s make all the Trump-Pence tax cuts permanent. That’s a way to really lay a foundation to grow the economy in the days ahead,” urged Pence.

Pence articulated his ongoing commitment to conservative values, stating his belief that America’s prosperity depends on adherence to principles including strong defense, American leadership globally, smaller government, lower taxes, and traditional moral values. This philosophical framework appears to guide his position on the specific tax policy questions now facing the Trump administration and congressional Republicans as they weigh competing priorities for fiscal legislation in the coming year.

“I really do believe that for prosperity … for the success of our country, we need to stick to those time-honored principles of strong defense, American leadership on the world stage, less government, less taxes, traditional moral values and the right to life, and I’m going to be a voice for that,” Pence added.