Trump administration considers tax cut for the wealthy
The Treasury Department is considering a tax cut for the wealthiest Americans through a change that would not need approval from Congress, officials said, a move that would follow a package of tax cuts last year that also benefited the super-rich.
The agency is studying whether to allow investment income, known as capital gains, to be adjusted for inflation in a way that shields more of it from taxation. Most capital gains are paid by wealthier Americans, who disproportionately hold large portfolios of investments.
.. The idea has long been advocated by White House National Economic Council Director Larry Kudlow, but tax changes this drastic are typically made by Congress
.. Kudlow and others have said the cost should be indexed to inflation. So once an investor sells an investment, if that “cost basis” is considered higher because of inflation, the capital gain would be less, requiring an investor to pay less in taxes.