Ex-Vice President Pence Cautions Trump on Potential Tax Increases

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Former Vice President Mike Pence cautions President Trump against allowing the 2017 tax cuts to expire, warning it would deal a significant blow to small businesses across America.

Quick Takes

Pence warns that raising the top tax rate from 37% to 39.6% for high earners would severely impact small business owners nationwide
The 2017 Tax Cuts and Jobs Act is set to expire unless extended by Congress, with Trump considering letting cuts for those earning over $2.5 million lapse
The former VP is advocating for making all Trump-Pence tax cuts permanent to strengthen economic growth
Pence emphasizes maintaining fiscal conservative principles while acknowledging Trump’s achievements

Pence Challenges Potential Tax Increase for Wealthy Americans

Former Vice President Mike Pence has publicly urged President Donald Trump to reconsider any plans to raise taxes on wealthy Americans. As the 2017 Tax Cuts and Jobs Act approaches its expiration date, Trump and some Republican leaders are reportedly contemplating allowing tax cuts for high-income earners to expire to fund other priorities. This potential shift in policy has drawn criticism from Pence, who views the tax cuts as a cornerstone achievement of their joint administration and essential for continued economic growth.

“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’.”

According to reports, President Trump is considering increasing the tax rate for individuals earning $2.5 million or more annually from 37% to 39.6%. This potential adjustment comes as the administration evaluates fiscal priorities for the coming years. Pence has expressed particular concern that such changes would disproportionately affect small business owners, many of whom file taxes through their business entities and would be captured in this higher-income bracket.

Pence Urges Republicans to Hold the Line on Tax Hikes for the Rich as Trump Weighs Options | Fox News https://t.co/L7uVao5dNZ

— Mike Pence (@Mike_Pence) April 17, 2025

Small Business Impact at Center of Debate

The former Vice President’s concerns center primarily on how tax increases would affect America’s small business landscape. Pence argues that many high-income tax filers are actually small business owners who report business income on their personal tax returns. By allowing rates to increase for this demographic, he contends that the administration would effectively be imposing substantial new financial burdens on job creators and economic drivers across the country.

“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.

Rather than allowing any portion of the 2017 tax cuts to expire, Pence advocates for making them permanent across all income levels. He emphasizes that extending these tax cuts would provide certainty for businesses and investors while establishing a solid foundation for sustained economic growth. This position reflects Pence’s long-standing commitment to fiscal conservatism and limited government intervention in the economy.

Looking Forward: Conservative Economic Principles

While acknowledging President Trump’s accomplishments, Pence has used this tax policy discussion to underscore his commitment to traditional conservative economic principles. The former Vice President continues to advocate for smaller government, lower taxes, and free-market approaches that he believes will best serve the American economy and its citizens. This stance represents both a policy recommendation and a reminder of what Pence views as core Republican values.

“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.

The debate over extending the 2017 tax cuts reflects broader discussions within Republican circles about fiscal priorities and economic strategy. As the expiration deadline approaches, decisions about tax policy will likely continue to be a significant focus for the administration. Pence’s public statements signal that despite no longer serving in an official capacity, he remains engaged in shaping the conversation around conservative economic policy and the future direction of the party.