The Republican Party is considering raising the top tax rate on millionaires to 40%.

U.S. Republicans are considering creating a new tax bracket for people earning $1 million or more to offset some of the cost of the tax bill, a stark departure from the party's decades-old opposition to tax increases, according to people familiar with the matter. The new top rate would be between 39 percent and 40 percent, according to people familiar with the matter. Trump administration officials and Capitol Hill allies are starting to draft a tax package that they hope will pass in the coming months. In addition, Republicans are also considering raising the top tax rate on incomes over $626,350 to 39.6 percent from the current 37 percent, meaning the top rate would return to the level set by former President Barack Obama.