Trump Wanting To Bypass Congress, Pass Another $100 Billion Tax Cut For Wealthy
The Trump administration is considering a legally tenuous maneuver that would effectively bypass Congress in order to allow the Executive Branch to cut capital gains taxes and other taxes on the ultra-wealthy to the tune of more than $100 billion.
This is on top of Trump's tax cuts already implemented last December.
While they haven't done so yet, Treasury Secretary Steve Mnuchin said at the Group of 20 summit meeting that the department was studying whether its use of regulatory powers would allow Americans to account for inflation in determining capital gains tax liabilities, reports the New York Times.
"The Treasury Department could change the definition of “cost” for calculating capital gains, allowing taxpayers to adjust the initial value of an asset, such as a home or a share of stock, for inflation when it sells," wrote Alan Rappeport and Jim Tankersley.
“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,” Mr. Mnuchin said, emphasizing that he had not concluded whether the Treasury Department had the authority to act alone. “We are studying that internally, and we are also studying the economic costs and the impact on growth.”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,” Mr. Mnuchin said.
Long story short - this will be a way for investors to skirt capital gains taxes, and revenues for the government will deplete drastically, ending up in the pockets of those who invest large sums of money in the stock market.
Senator Chuck Schumer immediately spoke out against the idea:
“At a time when the deficit is out of control, wages are flat and the wealthiest are doing better than ever, to give the top 1 percent another advantage is an outrage and shows the Republicans’ true colors,” Schumer said. “Furthermore, Mr. Mnuchin thinks he can do it on his own, but everyone knows this must be done by legislation.”
Read more at the Times.