Trump Administration Mulls a Unilateral Tax Cut for the Rich

New York Times ^ | 7/31/18 | Alan Rappeport and Jim Tankersley

[DoodleDawg]

The Trump administration is considering bypassing Congress to grant a $100 billion tax cut mainly to the wealthy, a legally tenuous maneuver that would cut capital gains taxation and fulfill a long-held ambition of many investors and conservatives.

Steven Mnuchin, the Treasury secretary, said in an interview on the sidelines of the Group of 20 summit meeting in Argentina this month that his department was studying whether it could use its regulatory powers to allow Americans to account for inflation in determining capital gains tax liabilities. 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.

“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.”

[DoodleDawg]

Because trillion dollar deficits aren't big enough I guess.

[mewzilla]

The deficits are the result of overspending, not undertaxation.

[Moonman62]

Steven Mnuchin, the Treasury secretary, said in an interview on the sidelines of the Group of 20 summit meeting in Argentina this month that his department was studying whether it could use its regulatory powers to allow Americans to account for inflation in determining capital gains tax liabilities. 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.

...

So the corrupt NYTimes turns this logical and fair idea into a “tax cut for the rich.”

[cranked]

Nonetheless, a bad move. He ran and was elected largely because of the common everyday Joe, he needs to keep that in mind when looking out for the upper class.

[Moonman62]

Because trillion dollar deficits aren’t big enough I guess.

...

So it’s fair to tax people on inflation?

[mewzilla]

Exqueeze me? WTH does this have to do with “class”? He supports returning people’s money to them. We should support that, no matter who the recipients are.

[Sacajaweau]

There are millions of ordinary people who own stock and/or a home and they get screwed royally when they sell.

[Nifster]

You don’t understand how ax cuts.....

[mewzilla]

But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.

Frédéric Bastiat, The Law

[Nifster]

You’re a fool if you believe a capital gains tax cut effects only the rich.....

If you have a 401k or own any stock or have a house you want to sell this effects pretty much everyone and in a good way

Now if they’d get rid of the death tax....that would be excellent

[Nifster]

Perhaps you ought to take a look at what the current tax cuts have done

[Paladin2]

This is the only logical way to handle asset basis for long held assets.

[livius]

I guess maybe if your definition of “upper class” includes every homeowner...

Capital gains taxes have a negative impact on anyone who owns anything, invests in anything, etc., no matter how modest their assets.

[Fresh Wind]

I certainly hope they get rid of that unfair 28% maximum capital gains rate on alternative forms of investment, specifically art, antiques, coins, bullion, and collectibles in general, and tax that gain at the same rate as stocks.

But I’m not holding my breath.

[relictele]

Hey that private meeting between Trump and the Times really worked out for him eh? They’re really giving him a fair crack of the whip. /sarc

[DoodleDawg]

The deficits are the result of overspending, not undertaxation.

True. So how about doing something about that first before reducing revenue even more?

[DoodleDawg]

So the corrupt NYTimes turns this logical and fair idea into a “tax cut for the rich.”

The title is entirely predictable, true. But it isn't a tax break that would benefit the lower or middle classes so much as the wealthier taxpayers.

[DoodleDawg]

So it’s fair to tax people on inflation?

We tax people on the taxes they pay. Where's the fairness in that? We don't adjust tax brackets for inflation, so salary increases that cover that are taxed.

[DoodleDawg]

You don’t understand how ax cuts.....

By all means enlighten me.

[DoodleDawg]

Perhaps you ought to take a look at what the current tax cuts have done

I mentioned the trillion dollar deficit.