US President Donald Trump has asked Congress to consider raising taxes on income over $1 million a year.
The proposal, which was floated in a speech to the United Nations last week, would allow for a 25 per cent tax on income above $1m and a 25.5 per cent rate on taxable income over that.
The proposal was first raised in the Senate last year, when Republicans opposed a measure that would have increased taxes on top earners.
On Tuesday, the US Treasury announced that the proposal would be part of the 2018 budget.
“The administration believes that a flat tax of 25 percent on all income above a certain threshold is the best way to pay for the cost of a trillion-dollar infrastructure investment,” Treasury Secretary Steven Mnuchin said in a statement.
President Donald Trump and his economic adviser Gary Cohn have been discussing tax reform and infrastructure spending, as well as trade, with Congress, sources said.
The Trump administration has said that it wants to raise the federal minimum wage to $15 an hour by 2022.
But Trump has said the minimum wage should be raised to $10 an hour over time, so as to ensure that it is sufficiently high to pay all of its workers.