President Donald Trump recently told Bloomberg that he is contemplating taking executive action to reduce taxes on investment income by indexing capital gains to inflation. This policy action has been something that Republican policymakers have been running on (as an issue) for a number of years.
“I’m thinking about it,” Trump told Bloomberg in the interview.
A number of Republican politicians and conservative-leaning think tanks, including the president of the Americans for Tax Reform — Grover Norquist, have been pushing the president to index capital gains to inflation since the 2016 election. What this essentially would do is cut the amount of capital gains taxes a person would have to pay when they sell investments. Grover Norquist has suggested that this move would help to further grow the economy.
White House Press Secretary Sarah Sanders stated in early August that Trump had asked the Treasury Department to look into indexing capital gains, but that, at this time, no policy (in either direction) had been determined.
Treasury Secretary Steven Mnuchin has stated that his department will investigate the capital gains cut because it is unlikely any Congressional action will take place on this issue for the remainder of the year (likely not until after the election, or even until next session).
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