Treasury Secretary Mnunchin, at present, is trying to figure out a method by which he can bypass Congress to pass a capital gains tax reduction. The move, if at all possible, will amount to a $100 billion tax break for people who own property and securities when they sell them. As it stands now, people taxes on the difference between the current day sale price and the original cost. Mnunchin is proposing to allow the original cost of an item purchased to be adjusted to present day inflation, which will dramatically reduce the amount of taxes liable on sales of assets. The Telegraph
Sen. Chuck Schumer is laughing at the idea, saying it could only be implemented after passing through Congress. And, with the unpopularity of the President with fall elections nearing, a bill that would almost exclusively benefit the wealthy would likely fail. It seems ridiculous to further cut taxes with the US budget deficit expected to top $1 trillion for the first time in 2020. Nevertheless, President Trump and Mnunchin are touting the proposed tax break. Whether or not the Department of the Treasury can really follow through is a wild guess, but it isn’t likely.