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President Donald Trump speaks during a press conference at Trump Tower on August 15, 2017 in New York City. (Photo: Drew Angerer/Getty Images)
Just Ahead of Labor Day, Trump Floats Tax Cut Condemned as 'Pure Giveaway to Wealthy'
"Apart from just sending millionaires checks, it's hard to think of a tax cut more targeted to the ultra-rich."
Aug 30, 2019
With Labor Day less than 72 hours away, President Donald Trump on Friday floated the possibility of handing wealthy investors yet another tax cut--this time by executive fiat--as the wages of most American workers remain stagnant.
On Twitter, Trump promoted an op-ed by Sen. Ted Cruz (R-Texas) and anti-tax crusader Grover Norquist urging the president to index capital gains to inflation, a move analysts say would primarily benefit the richest Americans.
"An idea liked by many?" Trump tweeted, linking to Cruz and Norquist's article in Real Clear Markets.
The tweet comes just days after Trump told reporters he is worried about being viewed as "elitist" and seemed to suggest he was no longer considering bypassing Congress to index capital gains to inflation, a move analysts and lawmakers say would be illegal.
As the Washington Post reported Friday, citing an anonymous senior administration official, Trump is considering unilaterally indexing capital gains despite the concerns he has expressed in public.
According to the Post:
The White House is still considering a plan to bypass Congress to enact a tax cut on capital gains, according to a senior administration official, although President Trump appeared to rule the idea out last week and expressed concern it could be perceived as "elitist"...
The capital gains tax cut would let investors who are selling assets, like a stock or a home, use the inflation-adjusted value of their initial purchase when making the sale. The higher initial price would reduce the taxable income from their sale of the asset, reducing the amount they pay in taxes.
In an analysis last year, the Center on Budget and Policy Priorities estimated that 86 percent of the benefits of indexing capital gains to inflation would go to the top one percent.
"The move would be a pure giveaway to wealthy investors," tweeted Slate's Jordan Weissmann.
Judd Legum, author of the Popular Information newsletter, echoed Weissmann, saying, "Apart from just sending millionaires checks, it's hard to think of a tax cut more targeted to the ultra-rich."
"Trump's political strategy," Legum added, "is to bad mouth 'coastal elites' and then give the coastal elites all the money."
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
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With Labor Day less than 72 hours away, President Donald Trump on Friday floated the possibility of handing wealthy investors yet another tax cut--this time by executive fiat--as the wages of most American workers remain stagnant.
On Twitter, Trump promoted an op-ed by Sen. Ted Cruz (R-Texas) and anti-tax crusader Grover Norquist urging the president to index capital gains to inflation, a move analysts say would primarily benefit the richest Americans.
"An idea liked by many?" Trump tweeted, linking to Cruz and Norquist's article in Real Clear Markets.
The tweet comes just days after Trump told reporters he is worried about being viewed as "elitist" and seemed to suggest he was no longer considering bypassing Congress to index capital gains to inflation, a move analysts and lawmakers say would be illegal.
As the Washington Post reported Friday, citing an anonymous senior administration official, Trump is considering unilaterally indexing capital gains despite the concerns he has expressed in public.
According to the Post:
The White House is still considering a plan to bypass Congress to enact a tax cut on capital gains, according to a senior administration official, although President Trump appeared to rule the idea out last week and expressed concern it could be perceived as "elitist"...
The capital gains tax cut would let investors who are selling assets, like a stock or a home, use the inflation-adjusted value of their initial purchase when making the sale. The higher initial price would reduce the taxable income from their sale of the asset, reducing the amount they pay in taxes.
In an analysis last year, the Center on Budget and Policy Priorities estimated that 86 percent of the benefits of indexing capital gains to inflation would go to the top one percent.
"The move would be a pure giveaway to wealthy investors," tweeted Slate's Jordan Weissmann.
Judd Legum, author of the Popular Information newsletter, echoed Weissmann, saying, "Apart from just sending millionaires checks, it's hard to think of a tax cut more targeted to the ultra-rich."
"Trump's political strategy," Legum added, "is to bad mouth 'coastal elites' and then give the coastal elites all the money."
With Labor Day less than 72 hours away, President Donald Trump on Friday floated the possibility of handing wealthy investors yet another tax cut--this time by executive fiat--as the wages of most American workers remain stagnant.
On Twitter, Trump promoted an op-ed by Sen. Ted Cruz (R-Texas) and anti-tax crusader Grover Norquist urging the president to index capital gains to inflation, a move analysts say would primarily benefit the richest Americans.
"An idea liked by many?" Trump tweeted, linking to Cruz and Norquist's article in Real Clear Markets.
The tweet comes just days after Trump told reporters he is worried about being viewed as "elitist" and seemed to suggest he was no longer considering bypassing Congress to index capital gains to inflation, a move analysts and lawmakers say would be illegal.
As the Washington Post reported Friday, citing an anonymous senior administration official, Trump is considering unilaterally indexing capital gains despite the concerns he has expressed in public.
According to the Post:
The White House is still considering a plan to bypass Congress to enact a tax cut on capital gains, according to a senior administration official, although President Trump appeared to rule the idea out last week and expressed concern it could be perceived as "elitist"...
The capital gains tax cut would let investors who are selling assets, like a stock or a home, use the inflation-adjusted value of their initial purchase when making the sale. The higher initial price would reduce the taxable income from their sale of the asset, reducing the amount they pay in taxes.
In an analysis last year, the Center on Budget and Policy Priorities estimated that 86 percent of the benefits of indexing capital gains to inflation would go to the top one percent.
"The move would be a pure giveaway to wealthy investors," tweeted Slate's Jordan Weissmann.
Judd Legum, author of the Popular Information newsletter, echoed Weissmann, saying, "Apart from just sending millionaires checks, it's hard to think of a tax cut more targeted to the ultra-rich."
"Trump's political strategy," Legum added, "is to bad mouth 'coastal elites' and then give the coastal elites all the money."
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