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Trump Considering Unilateral $100 Billion Tax Cut for the Wealthy

PHOTO: Chip Somodevilla/Getty

By Tyler Durden | 31 July 2018

ZERO HEDGE — We may have an idea what was the (leaked) reason for today’s selloff in Treasurys, which pushed the 10Y yield just shy of 3.00%.

According to the NYT, the Trump administration is considering a $100 billion unilateral tax cut meant to mainly help the wealthy, and is hopes to bypass Congress in implementing it “a legally tenuous maneuver that would cut capital gains taxation and fulfill a long-held ambition of many investors and conservatives.”

However, despite the NYT’s alarmist take, Trump’s proposal actually does make some sense: what it calls for is to inflation-adjust one’s long-term cost basis when calculating capital gains tax. Considering that various welfare programs like Social Security are already indexed for Cost of Living Adjustments, the idea is probably not that outlandish, especially if inflation were to suddenly explode higher. […]

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