Trump's tax plans

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Amazing, they're dubbling down

The Trump administration is considering acting unilaterally to institute a $100 billion tax cut that will largely benefit the wealthy, according to a report in The New York Times. The Times reported that Treasury Secretary Steven Mnuchin at a recent G-20 meeting in Argentina said if the tax cut can't be done through Congress, the administration will “look at what tools” are necessary to consider the move. “If it can’t get done through a legislation process, we will look at what tools at Treasury we have to do it on our own and we’ll consider that,” Mnuchin said. “We are studying that internally, and we are also studying the economic costs and the impact on growth.”

At issue is a priority of conservatives to reduce the amount that people pay in capital gains taxes by indexing capital gains to inflation. Republicans see this action as a way to build off the tax-cut law that Trump signed last year, and say it would boost the economy by increasing incentives for taxpayers to make new investments.

Under current law, people pay capital gains taxes on the difference between the amount for which they purchased an investment and the amount they sold it for. But conservatives instead want people to pay capital gains taxes only on the difference between the cost of purchasing the investment plus inflation and the amount for which the investment was sold.

Trump weighs big tax cut for rich: report