US Republicans consider raising top tax rate for millionaires to 40 per cent

US Republicans are considering creating a new tax bracket for people earning $1 million or more to offset some of the costs of the tax bill, according to people familiar with the matter, a sharp departure from the Republican Party's decades-long opposition to tax increases. The new top tax rate would be between 39 and 40 per cent, people familiar with the matter said. Trump administration officials and Capitol Hill allies are beginning to draft a tax package that they hope to pass in the coming months. In addition, Republicans are considering raising the top tax rate on incomes over $626,350 to 39.6 per cent from the current 37 per cent, meaning the top rate would revert to the level set by former President Barack Obama.