Trump Warns: Tax Hike on the Wealthy Will Lead to "Exodus of the Rich"

U.S. President Trump told reporters in the Oval Office on Wednesday, local time, that raising tax rates on millionaires would spur the wealthiest Americans to leave the country. He downplayed an idea being discussed in some Republican circles as a way to fund an economic plan. Trump said: “I think it will be very destructive because millionaires will leave the country.” “Other countries that have done this have already lost many wealthy people. It’s bad because the rich pay taxes.” Trump's comments may pour cold water on discussions about establishing a new 40% tax rate for those earning $1 million or more annually. Some Republican members of the House and Senate have expressed willingness to tax high-income earners to help fund other parts of Trump's agenda, including proposals to end tipping and overtime taxes.