A Battle Over the Future of Conservative Tax Policy—And Your Wallet
Former Vice President Mike Pence is warning Republican lawmakers not to back a proposed tax increase on high-income Americans, a policy currently being floated by Trump’s White House. The idea? Raise the tax rate on those earning over $1 million to help pay for eliminating taxes on overtime pay, tipped wages, and Social Security benefits.
For many seniors, retirees, and small business owners, this internal GOP clash could have big consequences.
⚠️ Pence Warns: Higher Taxes Could Hurt Retirees and Small Businesses
In a letter sent through his conservative think tank, Advancing American Freedom, Pence called on Congress to protect the Trump-era Tax Cuts and Jobs Act—the same law that helped spark historic job growth and lower taxes for millions of Americans.
“We need to protect the tax relief that made America strong again—not adopt policies from the Kamala Harris playbook,” the letter stated.
Signed by AAF President Tim Chapman and Board Chairman Marc Short, the letter was addressed to House Ways and Means Chairman Rep. Jason Smith (R-MO) and Senate Finance Chair Sen. Mike Crapo (R-ID).
🇺🇸 Trump’s Tax Cuts Created Jobs and Lowered Costs—Why Reverse Course?
Pence emphasized that the original Trump-Pence tax cuts benefited families, small business owners, retirees, and middle-class Americans alike. They delivered a powerful boost to the U.S. economy, with millions of jobs created and wages rising—especially for older workers and entrepreneurs.
“Lower taxes mean more opportunity,” Pence said in a statement. “The Trump-Pence tax cuts helped build the strongest economy of our lifetime.”
But now, with Trump back in the White House, a new tax plan is being discussed—and Pence wants Republicans to hold the line.
🔍 What’s Being Proposed Behind Closed Doors?
According to sources cited by Fox News Digital, the White House is reviewing a 40% top marginal tax rate for those earning over $1 million. This move would help pay for popular proposals to eliminate taxes on:
- Overtime income
- Tipped wages
- Social Security benefits for seniors
While these reforms could offer relief to working Americans and retirees, Pence argues that raising taxes on top earners—including many small business owners—could backfire.
💬 Pence Fires Back: “Republicans Don’t Raise Taxes. We Cut Them.”
In a fiery post on social media, Pence doubled down:
“Raising the top marginal rate would be a huge tax increase on Small Business America,” he warned.
Pence has also recently criticized Trump’s tariff policies and warned against big-government economic intervention—a message that resonates with many older conservatives who value limited government, low taxes, and free markets.
🗳️ Pence’s Political Fallout—and His Message to Republican Voters
Since the events of January 6, 2021, Pence has distanced himself from Trump, refusing to endorse him during the 2024 campaign—even after congratulating him on his victory. Pence’s brief 2024 presidential run failed to gain traction, with many in the Republican base viewing him as disloyal.
Still, Pence insists his position is grounded in constitutional values and traditional conservatism. And in this latest debate, he’s sounding the alarm: don’t undo the very tax policies that put America back on the map.
✅ The Bottom Line: Don’t Let Washington Touch Your Retirement or Raise Your Taxes
For older Americans living on a fixed income, or those running a small business, the stakes couldn’t be higher. Pence’s message is clear: Republicans must hold the line on taxes and stay true to the promises that created prosperity during President Trump’s first term.