Finance

Trump says he's considering reducing capital gains taxes

President Trump told Bloomberg on Thursday that he's considering taking executive action to reduce taxes on investment income by indexing capital gains to inflation - a move that is a high priority for conservatives.

"I'm thinking about it," Trump said in an interview with the news outlet.

Some GOP lawmakers and outside conservatives such as Americans for Tax Reform President Grover Norquist have been pushing the White House to issue regulations to index capital gains to inflation - an action that would cut the amount of capital gains taxes people pay when they sell investments. Conservatives arguing that indexing capital gains would help boost the economy and build off the tax law Trump signed last year.

But Democrats strongly oppose the idea, arguing that indexing capital gains would largely benefit the wealthy and would increase the deficit. They also argue that the Treasury Department does not have the authority to index capital gains on its own.

White House Press Secretary Sarah Sanders said earlier this month that Trump had asked Treasury to look into indexing capital gains but that "no administration policy has been determined."

Treasury Secretary Steven Mnuchin has said that his department would look into the capital gains cut if Congress doesn't take legislative action. Congress is unlikely to pass legislation to index capital gains this year, since a bill to do so would need support from some Senate Democrats.

 

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