Tuesday, August 11, 2020

Trump 'Very Seriously' Considering Capital Gains Tax Cut

President Trump said he’s “very seriously” considering a capital gains tax cut,

“We’re looking at also considering a capital gains tax cut, which would create a lot more jobs,” Trump said Monday at a White House news conference.

Bloomberg notes that the president can’t unilaterally cut the 20% long-term capital gains rate without Congress, but some advisers tell him he could issue an executive order that would slash tax bills for investors when they sell assets. The move, known as indexing capital gains to inflation, adjusts the original purchase price of an asset when it is sold so no tax is paid on appreciation tied to inflation.

Trump also said he was considering a “cut in the middle-income income tax.” Congress would have to pass legislation to make any reductions to tax rates, which is unlikely to happen before the end of the year.

As I have stated before, I am all for tax cuts but if Trump doesn't cut spending by similar amounts he is just shifting the method of taxation, most likely via Fed monetization of deficit spending which results in upward pressure on prices.


1 comment:

  1. Robert, I know you are correct on the tax cuts with no spending cuts, but, don’t you think that in these times, which could be the end of the dollar, the end of the empire, we should be for anything we can to keep whatever we can from the State to use to prepare for what is coming?
    The State is going to spend, print, and monetize in an unending spiral to hell whether there are tax cuts or no. I think it’s time to look at all these things in a different light, instead of pointing out spending needs to be cut, we need to talk about how to take advantage of what is actually happening and how to survive. I might be totally wrong, but that’s how I am looking at the current situation.
    We know what ought to be, but shouldn’t we look at what actually is,(and there is no end to it this time) and take advantage of every opportunity to keep whatever FRN’s we can and use them? Do I care right now about correct monetary policy when they surely don’t, or do I want to keep every scrap penny I can and buy gold? To hell with what the State and the Fed will do, it’s beyond repair and they will fiddle while the printing presses burn.
    Just my current attitude.