No surprise that they want to do this. They've largely gotten away with the tax rate cuts for the wealthy and corporations, without facing any negative consequence (thus far). Since that went so well, why not cut the capital gains taxes next? It stinks of rank greed, but if the other 99% of us voters in the country are silent about having our pockets picked, what constraint is there to keep Mnuchin from cutting all the other taxes hated by the wealthy?
19
Wow! These Trumpsters actually think they are getting away with robbing the Americans they are supposed to serve...
Finally, a president willing to rob the treasury for the sake of rich, privileged people, like himself. Amazing that these people have no shame about their own enrichment. Sad and sickening.
13
Trickle down is an absurd lie that keeps fooling middle America. I'm so over this, conservative hypocrites.
14
“The world cannot go on without usury, without avarice, without pride, without whoring, without adultery, without murder, without stealing, without blaspheming of God and all manner of sins; otherwise the world would cease to be the world, and the world would be without the world and the Devil without the Devil. Usury must be, but woe to the usurers.”
Luther
4
Mnuchin's wife, Louise, must have asked for a new bauble.
9
It's not like we need yet another reason to flood the polls in a Blue Tsunami and 'clean house', but thanks, GOP, for the motivation just the same. Until then, we'll brace ourselves for the inevitable recession as a result of monumentally stupid ideas like this one.
7
Too bad there's no money for CHIP.
7
So - ok, then President Joe Biden can dramatically raise taxes on the billionaires on his first day in office. Cool.
13
One day I will be rich and this tax break will make me even richer! Let those other poor slobs without the dream pay for my fantasy life. Thank-you, Mr. President and Mr. Mncuchin for your courageous fight to keep my fantasies at the top of your agenda.
5
The con artist and his lieutenants are taking the country for another ride. Good luck to his working class supporters.
8
The wreckage to this country consequent to this president and this Congress will never be repaired short of revolution, but which is about as likely as Republican voters admitting their mistakes. Instead, watch for a collapse in the market for U. S. Treasury debt, the consequences from which there will be no escape.
5
"Treasury Chief Weighs $100 Billion Tax Cut for Wealthy"
More informative, and more correct
"Treasure Chief Weights Adjusting Capital Gain for Inflation".
It is important that the public beliefs that taxes are fair.
To tax paper gains, due to inflation violates that belief.
1
Under current tax rules the owner of a home purchased 40 years ago would calculate the gain based on its original cost. Over that time period the owner would have paid taxes, insurance and maintenance etc and it would have served perhaps three generations. Because of inflation and the local market mechanics over 40 years its selling price may be 10 times more than its original cost. Sounds wonderful, except, all that difference becomes taxable "income" if sold. The home is for many people their most significant asset. So using that asset to fund retirement or simply selling to downsize, move to be closer to family or move for any reason triggers "income" and and may be significant enough to derail these plans. Increasing the original cost by inflation would to some extent reduce this "income" and the tax thereon giving owners more flexibility to access the value they have spent years building.
The more the tax code can be changed to reflect reality, in this case inflation, is a good thing. Doing it in the manner proposed troubles me.
4
@bear Baloney. As a single homeowner whose home appreciated > 4x original cost, I was able to deduct all the major improvements (and, of course, there were many over the two decades I owned the house) as well as $250,000. If more than one person owns the house (husband and wife, for example), it's $500,000 plus improvements. How many houses appreciate more than $250,000 before they're sold by your average middle-class homeowner? You're obviously yet another smoke blower trying to make more $$$$$ for yourself (or your ridiculously rich clients).
5
This is exactly what the Republican donors pay for.
I assume that all of these controversial moves like EPA car emissions, endangered species rollbacks, and more tax cuts for the rich are being done asap because Republicans fear the midterms outcome. Like with Bush II, they have to grab all they can before the nation is turned over to a democrat.
7
That’s $100m more deficit spending per YEAR
4
Enough! No more trickle down, supply side, only yachts get lifted, don't worry plenty of crumbs will fall off the table, scams.
1) treat capital gains like wages of people who actually work
2) give tax cuts to people who have to spend their income to live
3) only give business a tax break IF 75% of it goes to more hires
or new equipment. Otherwise go back to the rates of the 50s,
you know the ones that commie Eisenhower had.
4) any tax cut has to include a minimum wage hike to a livable
number.
5) any corporation that makes a profit HAS to pay some tax.
Check out GEs profit and tax history.
6). If a corp makes money in this country is has to pay taxes in
this country. No more Bahamas po box " headquarters".
9
"Capital gains taxes are overwhelmingly paid by high earners..." Other than those smitten with envy, who cares? As long as tax cuts reduce the money coerced from taxpayers, and reduce the bloated revenues wasted and pilfered by denizens of the Swamp, they ought to be embraced. The fact that Trump's first tax cut has had such a benevolent effect on the general welfare is reason enough to support a cut in capital-gains taxes. If the NYT would stop pitting some citizens against others on the basis of income, wealth, color, creed or any other demographic measure, America will be better served by the Fourth Estate. People might even stop shouting, "FAKE NEWS," when they to read the NYT.
3
Bad idea just like tariffs (taxes) and not keeping the
Government's Court ordered timeline to reunite immigrant families. But gee Trump tells us they're all rapists and murderers and Trump never lies or over exaggerates and they're criminals anyway so lock 'em up. I could say the same about Trump in terms of liar, scam artist and fraud who I think is going to be impeached soon. Wait until September after the midterms are over. I think Trump will put a Democratic majority in the House and Senate just by being Trump. A cogent, well thought out policy on immigration would help too that helps to guarantee the minority of bad guys in the larger group are targeted and kept out. A viable government health care program that is not single payer (too "socialist") would be good too. And get rid of those tariffs (taxes) and government subsides to farmers to offset the effect of tariffs. And if farmers get subsidies next it will be manufacturers. And give the rich a $100 billion tax cut---just the rich? That looks too much like a bribe. If it happens have to make sure Trump himself doesn't get an of the largess. But I believe he did already with the first tax cut. Venal, greedy and opportunistic. That's Trump to a "T".
2
Problem is the Trump WH is proposing starving the govt as the deficit grows bigger and bigger giving the alt right the chance to get rid of big chunks of it. The conservative dream is to have a govt free total capitalist society. God help us as we go back to the industrial age and all its abuses, let alone abandoning our environment to the polluters,
5
Lots of comments, shows what Americans care about--themselves and money.
3
Interesting how the "Administration" is now picking "winners and losers". Is that what Republicans claimed Obama was doing with the "solar industry"?
3
The top richest Americans hold more wealth than the bottom 50%. The well off enjoy the value of stock and investments.
And great tax advantages courtesy of Republicans. They will enjoy yet more windfalls when Trump and Mnuchin's greedy scheme takes fold. As will their families.
Trump will brag to people who pay him $200,000 per year for membership at Mar-a-lago how he made them a whole lot richer.
The bottom 50 % hold 1% of the wealth in the U.S.
Long term debt accompanies them in life. The bottom 20% can earn less than $10,000 per year. One car repair will set them back significantly. Many do not have health care or savings. This is the American Dream?
6
It's actually a recipe for a backlash.
3
Coming back for the crumbs leftover from the Great Recession.
2
To justify - or pretend to justify - that such a ginormous tax cut for the wealthy that will further deplete government coffers is good because a few "middle class" families stand to gain pennies while the oligarchs reap dollars (which was exactly what happened with the recent tax cut) is among the most ignorant, fiscally unsound ideas I've ever heard.
1
This is plunder of our Treasury. Plain and simple but dressed up in blue suits and high falutin’ language. If we don’t disoribute our taxes got our long term survival, America will have bobble heads like the Trump boys lording over a populace of serfs. All efforts to keep America the richest, mostly successful nation ever will be thwarted when nobody can read or write much less dream and invent. It’s really deplorable. But the gullible voted them in.
3
Talk about entitlement! Have you ever seen anyone with a greater sense of entitlement than the Republican Party??
11
Yet another way that Trump and his cronies (and, yes, we're looking at you Wilbur Ross and Steven Mnuchin) are planning on looting the government on their way out office, whenever and however that might be. Think of it as a golden parachute for crooks and con-men.
10
This would be good for me personally. But it is a terrible idea for the country. Just another giveaway to the wealthy when lower-income people struggle and the middle watches the rich pull away even farther up the income ladder.
No. At some point a decent regard for our fellow Americans ought to come before further enriching the already-wealthy.
7
Why is anyone surprised? He’s just fulfilling his campaign promises.
3
This isn't the version of Robin Hood I have read about or seen in the movie theatres, thought the good guy was suppose to rob the wealthy and give to the needy. Then we all know trump is more like Al Capone, a Bugsy Segal, the gangster type, a crook in it for himself/family and loyalists.
1
Comment to those who support Donald Trump:
The 2017 tax bill gave companies many billions of dollars of tax breaks. They spent about 85% of that money to BUY BACK STOCK. Only about 15% was used for ONE TIME BONUSES. Very little was used to raise wages for ordinary workers.
If you are not worth millions of dollars, this $100 Billion giveaway does not get you anything.
Why should we all go into deeper debt to give millionaires and billionaires another pile of cash that they really do not need, and are not using to MAKE JOBS?
70% of the US economy is based on CONSUMER SPENDING, not "trickle down." (There is no "trickle down.")
Why is the $100 Billion giveaway ok with you? Or do you just not understand or just do not care, because Donald wants to do it, so that make it fine with you?
Any of you out there have an answer?
107
I don’t support President Trump but I have an answer. Not indexing cost basis is just wrong. If you really agree that it shouldn’t be, then you must believe the tax brackets should not be indexed. No other conclusion makes any sense. Everything can’t be about to/from and I get that you want to punish the “rich” but at least make logical arguments. Maybe there is logic beyond hatred but I fail to see it.
1
@Joe From Boston. Joe. I have a couple of questions for you. Why did 1.6 billion of BHOs bank bailout go to the crooks that ran them into the ground in the first place? You seem to think uninformed, easily duped, voters come only from the right. Here's another one. Why did the vast majority of the BHOs recovery wealth go to ...wait for it...the 1% the same as the it has thru democratic and republican admins for the last 40 years. I sure didn't hear any complaints from the left on this stuff. The point is, who's in charge only changes things to a degree. We, the majority of people in this country, are the patsies no matter. We're just blind depending on who we voted for.
2
Indexing profits from capital investment has been considered for a long time, but always in conjunction with the assumption that the full personal tax rate, that is 37.5% for the wealthy would be used as the basis.
Doing it independently, and retaining the 20% reduced capital gains tax rate (23.8% with the Investment income tax) is double-dipping, since that reduction was justified, at least in part, by inflation losses.
You can eat this cake and keep it!
5
@Gio Wiederhold. It's always easier to get your cake and to be able to eat it to, if you own the bakery.
Not sure one can determine if indexing certain capital gains would benefit the wealthy proportionately more than the average taxpayer. Sources maintain sales of investments held for long-period are not sold at all because of tax. If holding period is indexed, investors might be more likely to sell generating some tax as opposed to holding till death and no tax is collected. In addition, lowering capital gains through indexing will generate capital formation, again according to sources.
Sure, index for capital gain for inflation. Similarly, the minimum wage should have been indexed for inflation as well. Then the national minimum would be about $11 to $12 at this point which is much fairer. If the 1% benefit so should the much larger number of people only getting the unindexed minimum wage.
So index capital gain, minimum wage, etc. as they already do for Social Security payments and COLA adjustments for SNAP.
4
The concept of adjusting the Capital Gains tax rate for inflation is not a new idea and has been batted around for a long time. But most people assumed the setting of new Capital Gains tax rates already had the inflation issue already baked into the final decision on this tax.
4
So, if 10% of the population owns 90% of it's nation's wealth, that leaves 90% of the population to achieve gains on probably the only thing they have of significant value, which is their house. That sounds only a little better than nothing. Meanwhile tax receipts will drop and our deficit will grow even larger. Once Trump leaves office, I hope sooner rather than later, the democrats will step back into power and facing an increasing deficit, will then have tighten government spending and increase in taxes just to slow the country's deficit let alone reduce it.
Aren't people concerned about how nearly all legislation benefits the wealthy and leaves the vast majority of the country's citizen are ever increasing economic disadvantage? Oh, and 1% on this country population owns 60% of the the country's wealth leaving 99% of the country owing the remaining 40%. Eseentially one hundred times more people in lower wealth bracket to share only 40% of the remaining wealth.
I support capitalism but not at the expense of the well being of the great majority. Capitalism is not just for the few. Democracy is also at stake in a similar fashion.
14
Before Mr. Mnuchin breaks the law with his shenanigans, we need to get to the bottom of Hillary Clinton's missing 33,000 e-mails, locate her private server that the Deep State is hiding, and expose her true involvement in Benghazi. Once these horrific deeds have been exposed, THEN Mr. Munchkin can move forward with his economy-breaking tax cut for the wealthy. Truly, it will help make America great again...for the 1%. #MAGA
5
Brilliant
1
This gift to Trump’s Republican cronies is his “get out of jail free” card. I’m truly looking forward to getting the guillotines out of the mothballs if the Republican Congress doesn’t act to prevent yet another assault on our treasury. I’m truly fed up with this and my fervent prayer is that reason will prevail in our government. This is a bridge even further than the bridge too far we crossed with the budget recently passed.
5
Enough with the trickle down economics!!!! Just because the 1% have money to spend, doesn't mean they actually spend it. It's a fantasy created by Reagan that has never actually come to pass.
11
If the administration is considering this to be the fair thing to do then certainly they will at the same time tie minimum wage to inflation, right? Oh wait...
7
Hillary was right......the deplorables! They abound in this administration. The Chief Deplorable constantly adds to the swamp and is making it deeper and murkier. This is no way to run a country or a democracy. If you just step back and look at the situation we are in.....it's deplorable!
12
@Carol I never would have ever thought that word would take on such prominence in my and our collective vocabularies.
4
So the trillion dollar cut they already did is somehow not enough?
9
I've held assets in a 403b for over 25 years: would I get a break when I take distributions? No. Not even a little, because distributions are considered 100% ordinary income - regardless of the ratio of deferred income to capital appreciation.
If I had taken the tax hit and invested rather than deferred income, I could reap all those yummy capital gains at a lower tax rate - adjusting my basis for inflation - like the big boys. Stupid me for staying in my lane.
This administration makes me ill.
12
Of course!
What else did anyone expect, who isn't totally illiterate, I mean?
Apparently that is only a tiny fraction of our existing population.
We're all being dragged down by this, except for the truly petty few.
And (if it was Lincoln. Was it Lincoln? the web says Lincoln; I grew up thinking it was Elon Musk, er, I mean, P.T. Barnum....) Lincoln was wrong:
Apparently you can fool virtually all of the people, all of the time.
This is the ultimate truth of 20th and 21st-century minority party Republicanism, and perhaps proof as well that democracy as a political idea is at root a failure.
We'll see in three short months.
4
Correct me, help me understand, this latest bulletin from the Ministry of Truth.
The unbridled chutzpah, selfishness, and self-serving policies, of our corporate owned government(s) these last 60 years, whether Republican or Democrat, is getting to be too much.
I, and tens of millions of Americans, regard our home(s), as not only our sanctuary, but for most, also the largest investment we make, can afford to make in our lives.
Homeowners, who make it through the recurring deliberately orchestrated financial shenanigans, created by our corporate owned government, and are still barely able to keep the "family" home, can never contemplate living out their lives in their home, and can rarely pass it on.
The quotes, in this instance, are intended to cause hysterical laughter, as the ludicrous reality in modern-day USA, is that government makes it well nigh impossible for American families to pass on a family home, using all manner of controls, and believe me, they are indeed controls, the first being several types of taxation, including capital gains taxation, and of course manipulated assessed valuations, and manipulated mil rates (the multiplier used to determine assessed valuations) which result in real estate taxes even in the same town being vastly different on identical properties.
Calculating capital gains taxes, so the tax due can be determined using the present value, instead of a 40 year ago purchase price, will benefit all homeowners, rich and poor alike.
2
Enough is enough!
How did ANY of these men make the money the obscene amounts of money they now have with all these pesky taxes and regulations in place??? And now they want them lowered (again) / abolished / tied to the inflation rate (whose percentages are always reported. 13 weeks too late (thirteen weeks is one quarter)). Regressives claim government doesn't exist to give handouts. Why are they allowing the government to be used to benefit the wealthy at the expense of everyone else?
7
Trump's Republican Party should rename itself The 21st Century Gilded Age Party. it was headed that way anyway before Trump became president.
2
Go figure. Meanwhile, another part of this superficially populist MAGA administration wants to eliminate the cost of living allowance adjustment for US government employee retirement benefits. Live long and learn to like dog food.
Regarding beneficiaries of inflation over long periods of time, clearly what is good for the well-invested is not good for the salaried workers.
3
Trump is exactly who Patrick Henry had in mind when criticized the Constitutional Convention writing, "I smelt a rat in Philadelphia tending toward the monarchy." We'll soon see if Republicans are truly sycophants who tend toward the monarchy, too.
10
Trickle down is great (I love crumbs!), but I would guess that the 0.1% who will receive two thirds of this $100B present would not use the money to prop up my local diner or the other struggling shopkeepers in my area.
I know I can’t really afford any lobbying, so I will just publish my counter-offer here: I would gladly volunteer to also receive a million or two, and in exchange I would actually commit to spend all that money in cars made in USA, in steaks, beers and other burgers, maybe even having a house or two built, all made 100% locally rather than stashing it in one of my numerous Cayman accounts. That is actually a much better deal than what is proposed here, but I am told that for some reason I don’t qualify for the government’s presents…
4
Republican greed and overreaching are key components of their self destruction. Hopefully they will keep at it until even the most clueless Americans figure it out. The hapless Democrat leadership should just stand back and watch the show.
2
Con Man sticks a fork in "Forgotten Man"
4
@Kay Johnson And, amazingly, the deplorables continue to believe that Trump has some super secret plan to make their lives better and increase their bank accounts. I just cannot understand how they can process stories like this so differently from the rest of us.
2
The top Administration players in the game of "Taxcut Monopoly" are giving more wealth to themselves--not just to a vague percentage of the rich--on top of enriching themselves from the first round of "populist" cuts. Like hogs in "Animal Farm," they get fat off the public trough while denouncing the poor and immigrants when they do the same. Trumpocrats dilute our democracy (as their master Putin does, in different ways), a form of gov't that cannot long survive some creatures' being a lot more equal than others.
3
First of All: It is always Trickle Up and Never Ever Trickle down.
Why do Working class republicans continue to vote against their own Tax Interests? If you are a working class American, this is YOU!
Where have all the Republican Deficit Hawks gone?
Why is no Republican in Congress outraged against side stepping the Legislation Process? Oh, it benefits their Donors.
Stop voting against your interests. November Elections are coming, GET OUT AND VOTE Them out.
6
@bob. Trickle up? It's a gusher. For the last 40 years the wealth of this country has been flowing to the top- yes even under BHOs recovery. Maybe it's time for a real socialist.
6
In the example cited, the average annual inflation rate since 1980 has been about 2.93%. It can be estimated as follows:
[FV = PV x (1 + i)^n] where FV = Future value; PV = Present value; i = the average annual rate of inflation; and n = the number of years in the interval (In this case, 38 yrs; (2018 -1980 = 38 yrs).
Thus: $300,000 = $100,000 x (1 + i)^38; or
[3]^(1/38) = [(1+ i)^38)]^(1/38); so,
1.0293 = 1 + i; and i = 2.93%, as the average annual inflation rate during this period. To check: [(1 + 0.0293)^38 = 3.0].
Since the cut will be funded by borrowing by the US Treasury, the inflation rate as a component of nominal interest rates will be key to its effect on the annual budget deficit and cumulative public debt.
With the Fed's decision on interest rates due tomorrow, and with wage inflation a chief target, in this current phase of federal funds rate increases by the Fed, the division of national income into wages and asset rents will remain a focus because of growing income inequality.
Also, the recent recovery has been aided by years of very low CPI growth resulting in overall lower costs of borrowing or interest rates that have helped to extend the length this period of economic growth. This recovery is nearing becoming the longest recovery in economic history.
[7/31/2018 Tu 3:09 pm Greenville NC]
At this point, the party of trump is a disgrace. The further drastic erosion of the middle class is a disruption of a stable society in favor of strict capitalist class power. It is anti-American and short sighted.
1
President Trump is ready to deliver yet another monetary gift from taxpayers to the richest in America. It's a blatant theft from The Treasury.
In 1992, Justice Department’s Office of Legal Counsel ruled this unilateral action illegal. But even if Trump's own plan is under judicial review, he, his family, friends + other well - heeled persons will have started collecting their money from OUR Treasury.
Trump and Mnuchin think OUR Treasury belongs to them.
The GOP/Trump tax law in effect now is unpopular. It throws the deficit sky high. And Trump talks about how he helps veterans, but their programs were selected for cuts to cover his budget shortfalls. Another betrayal.
You never hear about "infrastructure week." And you won't. The GOP will claim there's "no money." 80% of Americans say they live paycheck to paycheck. Gas and groceries cost more, as well as housing and healthcare.
Wages dropped in the 2nd quarter of 2018 + workers have far less bargaining power. Trump's running a shell corporation instead of an executive branch to access OUR treasury to give the advantage to the richest Americans.
4
This is what happens when you get rid of the thimble in Monopoly and replace it with Tyrannosaurs Rex!
4
So many liberals seem to hate "the rich"--whoever "they" are. I count myself among the hated, whatever I am.
But I did my share of being really poor; sharing housing with strangers, earning minimum wages, "skrimping and not having enough to save", etc. But eventually, I found my way, through lots of studying and very hard work and long hours.
I often think that those who resent others who are "rich"--whatever that is--don't realize that the latter are working while you are at the beach, or home watching TV or t the ballgame. They are worrying --often deep into the night--about their business or professions while you are relaxing.
They are coming in earlier than you, leaving later than you, and working many weekends while you are not, and it is often their capital that is at risk, not yours.
3
Seriously? At the beach? And you wonder where the hate is coming from.
I don't begrudge the wealthy their wealth, but please don't make the mistake of thinking that the less wealthy don't put in long hours and work hard.
I'd laugh myself silly if I didn't feel nauseated.
5
Certainly, all the less wealthy are at the beach kicking back and complaining about the wealthy. Give me a break. Tell that to the single mom working two jobs and still not making ends meet. There is far more at play than just “the poor” not working hard enough.
4
Maybe that's how YOU spent your time when you were poor but I and millions of others did not and do not. I worked hard then and I worked hard now, in comfortable financial circumstances.
It is not about jealousy, it is about fairness. The percentage of taxes poor and middle income people pay is much higher than the wealthy. Warren Buffet famously stated his secretary was taxed at a higher rate than himself. The tragedy of America is so many poor and working people continue to support politicians and policies that do not help them at all. Too many Americans think that they are early stage millionaires when in fact 40% cannot afford to scrape together $400 for an emergency without selling somethingor borrowing money.
8
His supporters elected a greedy and unethical real estate developer to run the country. The desire to cut taxes that benefit himself and his progeny is completely expected and in line with many other measures he's taken for self benefit. He is the ultimate swamp monster.
2
When it comes time for Democrats to save the nation from itself again, I hope they stop their idiotic predilection of trying to look like consensus builders.
They need to raise the upper income tax bracket to the 90% it was when America was last Great.
They need to get rid of tax breaks on capital gains.
They need to hunt down and financially kill tax havens and tax avoiders.
And they need to tax wealth until it squeals like the little piggy it is.
They need to reassert control over foreign investment and ownership., And they need to do it the first day of business, just like Trump...he did, dind't he? He said he would..
At least then it will take Republicans a few years to undo it all again, as they always do.
2
But there is there is the problem: Democrats would reduce the deficit, fix roads, fund schools, etc by doing the responsible thing and raising taxes. Then the Republicans cry that the Dems love taxes, they get voted into office, they cut taxes...and repeat.
2
@Barbara
Well then the Democrats better do such an amazing job at governing for all the populace, that the Republicans would have no other option but to get onboard with progressive issues. Once everyone has a good safety net, there is no way they'll let Republicans take any of it away.
This is not about extremes left vs right. It's about building instead of destroying, destruction which the Reps and Trump are gladly exercising.
You had eight years, but just look at the poor condition of our airports and roads. What did the Dems accomplish?
I am beyond amazed at how flagrant this administration is at catering to the super rich. They don't even disguise it or attempt to hide it in some other, innocuous bill anymore- they just come right out and shout it from the rooftops! I guess they have seen, again and again in the last year and a half, that their base is willing to accept anything, so why hide anymore? It just boggles my mind (and makes me very, very afraid) to try to imagine the mess that will be left in Trump's wake. Another Republican fiasco, this one of especially epic proportions, is in the making. Heaven help us.
10
Great, helping the, "little guy" once again. I am sure the poor M.A.G.A. people in West Virginia, Alabama and Mississippi will be all in favor of this.
4
As if moral bankruptcy for America isn't enough, Trump's taxation policies will drive our Treasury to the highest debt on record and ensure bankruptcy for future generations.
Is there no shame in the Republican Senate and House "leaders"? They are equal participants in this sham on good American people and their families.
God Save America!
3
Fake news! Other, more responsible journalist such as BBC, Bloomberg, etc have already reported that the White House is not actively considering this.
By the way and just so's we all know, if these clowns get this, they will still want more. Look at some of the comments on how very, very unfair it is that the wealthiest have to pay taxes on any of the way they make bank that simply aren't available to 98% of the American public.
This is what these guys are: greedheads. And greedheads never get enough room at the troughs, which is why they're always creating new troughs.
Nor does the loot go to anything socially productive: not infrastructure, not equipment investment, nothing like that. That's just something guys like Trump and Mnuchin (remember the wife? Tells you all you need to know here) say to cameras, before they slip into the back office and burst out laughing.
And make no mistake, this applies to EVERYTHING from today's GOP. Take Roe v. Wade: they get that, they'll go after contraception. Letting businesses discriminate against gay folk? If that's okay, they go after black people and Cat'licks and Jews next. Can we ban Muslims from the country? Sure, why not, and what's wrong with denying them basic due process? Hey, they're prolly terrorists anyway, but we can't tell till we waterbiard them some. No, of course it's not torture.
Point is, these clowns have no limits. Stop expecting Trump to stop at some point.
And fer crying out loud, vote.
9
Trump's paraphrase of Marie Antionette is "let 'em by stock".
3
Does anyone wonder why socialism is starting to gain momentum on the left?
4
And of course the capital gains in IRAs of the middle class would not be included in this tax gift to the wealthy. Bad policy. Wants to make the deficit a trillion a year.
4
Given the environmental deterioration and ultimate collapse, how else are the very wealthy going to be able to afford Richard Branson's flights to Mars and the huge costs associated with development and life on an alternate planet? If you balance sheet is 9 figures, you can take the whole family. If, like the majority of Americans who are paying for NASA and its search for water on Mars, you don't have even six figures to your balance sheet, you're stuck. Steve Mnuchin is in the former group, with a trophy wife who is used to stepping out, and now envisions stepping off (thanks Mr. Branson)! So what other deeply warped ideas will come out of this group of pigs who have no interest in the public interest or the long term interest of the public?? Tomorrow is another day.
3
The rape and plunder of the people's government continues. The 1 percent benefit, the trump base, largely not from the 1 percent continue to cheer it on. Try as I might, I can not see how this ends, certainly not in a good way for the nation. Do we have to see the nation face public bankruptcy from this gross pocket lining of the 1 percnet in the same way gross over-spending on the military ultimately doomed the Soviet Union?
3
Oh boy, more tax cuts. Who doesn't love welfare for billionaires and millionaires paid for by US taxpayers.
I'll need a big red Making America Much Worse umbrella to keep all that trickle down dough from raining down on me.
Let's see republicans walk back the 2 trillion and counting deficit.
12
I believe the comment “Capital gains taxes are overwhelmingly paid by high earners, and they were untouched in the $1.5 trillion tax law that Mr. Trump signed last year.” Is incorrect.
Check the Opportunity Zone IRC 1400z
This will save billions of dollars in taxes for the top 1% in capital gains taxes
What did we think was going to happen with an administration that is all rich people who want to keep getting richer. A pox on all their houses. Thieves.
3
They can get away with this and more. Trump’s base is a cult that does not care about nor know what capital gains or adjusted for inflation actually mean. They are nothing but dangerously blind followers.
1
NOT "adorable."
1
Trump attempting to bribe the Republican Party. The sequel.
1
The Internal Revenue Code already takes into account the effect of the passage of time on the true cost of holding securities. It does that by reducing the tax on long term capital gains. The highest rate for high earners is 20% on the gain rather than the 35% that would otherwise apply. It could’ve done the same thing by adjusting the cost basis by inflation. But it would be inappropriate to do both.
NOTE: The required holding period is 1 yr to qualify for long-term capital gains treatment. The taxpayer may be much better off with the reduced tax rate rather than the inflation factor, depending on the actual holding period. The stated rate for the tax on long term capital gains does not include the Net Investment Income Tax of 3.8% that applies to a subset of high earners. qualify for long-term capital gains treatment.
4
Indexation is a fair way, in my opinion, to compute real gain/income.
Would hope that it could also extend to the taxable thresholds for income taxation of social security benefit as they are not indexed. Not indexing a tax means that it is a stealth tax increase. Remember how AMT crept into the mainstream of taxation. Ditto for current investment income tax.
Another tax cut that will result on more pressure to cut SS and Medicare. Surprise, surprise. The greed is overwhelming.
6
The money will go straight to China factories with cheap labor and Chinese will use profits to build islands, its military, its surveillance networks and return some profits to the Treasury Secretary and his friends
6
Another payoff to the ultra-wealthy? Enough!
4
With all the seemingly inherent power of the President, what purpose does Congress have any longer?
5
If the wealthy don’t have to pay taxes why should I?
6
We have to consider that Trump has in one way made himself the undarling of the rich businessmen by fighting against their source of cheap labor: unlimited immigration.
In order to keep them from voting Democrat, which would help them in that very important area, he has to give something back to them.
Isn't that what the Left does when it buys votes with benefits, keeping people on the dole, voting for more benefits, instead of on the job, working for them?
Poor one percenters. It is true that as their assets increase in value over the years a portion of that increase is attributable to inflation. But then none of the gain is taxed as long they hold the asset allowing them to defer payment of tax and, when it is sold, the gain is taxed at a significantly lower rate then income earned as ordinary income. When they die assets in their estates receive a step up in basis avoiding taxation of the increase in value. If that is not enough to offset the inflation portion of their gain I am at a loss to find what it might be.
3
Ok, so adjusted for inflation, the $100K in 1980 becomes $300K today. When my husband was bagging groceries part-time at a Krogers in the deep South even earlier than that, he was paid $10/hour. So I guess that means those workers should be getting paid at least $30/hour today?
7
@MPL
In NYC, my corner store was open 24 hrs. Now, it's open 6AM to midnight, because they can't afford to pay workers a higher minimum wage. If workers at Krogers get paid 30/hr, the cost of produce will go up and the store's hours will shrink.
Just wanted to thank all the protest voters once again for all their efforts!
Good job!
7
I haven't checked out the details but my wife and I would probably benefit from this if it goes into effect. But I think that people who have done well enough to live comfortably should be willing to pay some tax. How many homes in the Hamptons or villas on the French Riviera do you need? In fact, I think that we should have kept tax rates the same as when President Obama left office. The economy was gradually getting stronger and the deficit was not excessive. We would have had continued moderate growth without the danger of inflation. With the Donald's tax cut (to say nothing of his meddling with tariffs), there is no way to avoid damage to the economy in the future. There is probably going to be a tremendous push to cut Social Security and Medicare (and probably gut Medicaid). Social Security was set up because of the problem of elderly people who were too old to work but they were destitute.
A modern society cannot be healthy if there is a small group of very wealthy people at the top and a very large group of very poor people at the bottom. The people who shop at Walmart have to have money or credit to buy things. It is said that about 45% of the families in this country could not raise $450 if they had an emergency unless they sold something or borrowed. Think about that -- they don't have $450 in their checking account.
My fear is that the Donald and his cronies will pursue greed until it permanently damages the economy.
7
What about those who had no job during the doldrums of the Obama economy? Should they just have waited it out as you suggest hoping for things to get better gradually? Apparently you are one of the fortunate ones who can have the sommelier fetch one more bottle of vintage wine from the cellar to ease your sorrows, but not all are as fortunate as you. They are simply thankful that they can put food on the table once again without having to rely on Obama’s government handouts.
1
@Ed We are talking about the Donald's tax policies since he is President now. All that the Donald's faithful want to talk about is President Obama or Hillary -- neither one of whom is President. Why is it that the Donald's supporters don't want to talk about his policies?
@Ed: I'd rather my tax dollars went toward helping the poor, as well as paying for public schools, public transportation, and universal healthcare that we can all use. Let the rich go sulk in their bubbles. They don't need any more of my tax dollars, and I object strenuously to giving them any more, just so they can buy back more stock and a seventh mansion.
Trump is doing what he is expected to do;
reward the rich including himself.
Those poor sheep that voted for him will get a basket full of water. Only the rich folks will get a piece of the American pie.
3
Oh dear, the poor, pathetic rich have their hands out again for charity. They're lucky they don't have to stand on a corner to do it. But, it is obvious to me that if we don't give them more money, they will become disgruntled and argumentative and start crying like the babies they are. What are we to do with them? We'll just have to find a way. Revolution anyone?
4
Trump cannot find a little money for vet's health care, demands billions for his wall or will shut down government at a cost of 6 billion dollars a week.
2
This will complete the cashtration of 98 out of every 100 Americans, including Trump's loyal base.
5
Trump's base will think their problems are Obama's fault, if that is what Trump tells them.
2
Let me guess - It needs to be done for national security reasons, right?
2
King Donald wants to bypass congress once again. Dethrone him.
2
It occurs to me that the richest Americans have the same mentality as Americans who turn to looting in times of disaster. There is a little widow of time when you can grab whatever you can get your hands on. Go for it! One is looting stores; the other the Treasury. But, hey, what's the difference?
4
I guess the administration has determined it may not make two terms so it's time to shop and go for it. seems like double-dippin' given the massive giveaway with the last tax cut. he won't leave any money on the table. that's a rule of of law he does follow.
3
While reading the WPO article about Woodward's coming book Fear, I followed a link to a 2016 interview by Woodward and Costa with candidate trump who said, "...economic conditions are so perilous that the country is headed for a “very massive recession” and that “it’s a terrible time right now” to invest in the stock market,..."
And now trump is pulling all the levers (unforced errors) to make it happen (create a villain): increasing the national debt through tax cuts, reducing federal revenues; implementing tariff wars resulting in companies laying-off workers; providing government funded bail-outs to ease the pain that adds to the debt; coupled with the Federal Reserve plan of increasing interest rates (not an error, but a plan).
Under cloak of news while we are distracted, Executive Orders are flying off trump's desk, politicizing our federal govt. workforce for generations to come:
Creating a partisan judiciary: Administrative Law Judges are now political appointees - 2000+ positions;
Another order that's the same for Deputy U.S. Marshals and Criminal Investigators positions;
Eliminating employee wrongful termination by removing the need for "Supervisors & deciding officials to use progressive discipline." coupled with an order that reduces the effectiveness of Unions;
Creating non-competitive appointments of civil service appts. of Military spouses;
Read the Federal Register
https://www.federalregister.gov/executive-orders/donald-trump/2018
2
So many are so concerned for the poor. What do you fo to help them? I would say in most cases it doesn’t extend to anything more than blogging about it. In your concern you also seem to forget that Trump has created over three million jobs. But, of course, he cares only about investors. Are they the same as all the deplorables the liberals sniffed at? But now the libs just want to help them—but too late, Trump has already gotten them jobs.
1
Wrong way to go about it but there’s no logical argument against it. As is, paying tax on inflation. If that’s what is wanted then we should stop indexing the brackets as well. There is no difference in principle. To argue otherwise is fallacy.
How about a unilateral tax cut for the poor and middle class? There has never been such a move by any president. The ultra rich and kind of rich can absorb the shortfall, after all they are rich. Why does this president keep rewarding only the rich who take advantage of the systems created by all of us?
Let’s just repeal the 16th amendment and return the power of the purse to the states as the Founding Fathers intended to ensure our checks and balances system works. If the Federal Government needs money let the states determine if the money is truly needed. Isn’t taxation without representation what the revolution was all about.
They figure that democracy provides political cover for their rapacious economic plans by promoting a false sense of power among the citizenry, where no amount of voting could ever build up enough democratic power to counter the financial power the richest have.
They game the economic system, and establish under-regulated capitalism by applying political ideas of personal freedom, liberty, justice and equality to making money. Liberty to make money with freedom from any restraints or constrictions is their idea.
They shut voters up with a sense of false equality by saying to them “you all control your government, you all have one vote per person, no matter how much currency we take from you.”
They tell us we're all equal, but capitalism promotes much more inequality than democracy ensures equality. What is one vote compared to billions and trillions of dollars? Indeed, instead of going hand in hand, capitalism and democracy have conflicting goals, and the most vulnerable believe them and consequently vote against their own interests.
That is why the Trump voters will cheer on this tax cut.
2
They can cut taxes to the rich without Congress acting? Why do we call this "populism"?
1
There is no bottom people. GOP will be behind this 100%. The transfer of wealth is accelerating under their tyrannical minority rule. They will never give up power now.
2
I'm a 2 percenter and though I worked hard to save enough to invest, I am happy to pay my fair share of capital gains. This give away is bankrupting our country and could lead to civil war.
2
Common things occur commonly. A con man will do his con job. Mr. Trump paid $25 millions to settle law suit for Trump University right before 2016 election. Folks, vote has consequences.
2
Everybody "wins" I guess:
Those who aren't rich - not by a long shot, and never will - get voice to their resentments, and an outlet for their anger.
Those who are rich get a $100 billion tax cut.
Oh, wait, I've left some people out.
Well, you can't win 'em all...
2
A tax cut for the super wealthy...WOW! that's such a revolutionary piece of legislation. The Republican true colors shine brighter than ever!
Ah, so "Chevron Deference" is suddenly a conservative value.
"[Actions that] permit executive bureaucracies to swallow huge amounts of core judicial and legislative power and concentrate federal power" are "more than a little difficult to square with the Constitution of the framers’ design."
— Neil Gorsuch
Here's your wall funding. When Mexico pays us back, these "overtaxed" suffering, rich Americans can get their tax rebates. Or we could forgo these unnecessary tax cuts, and use this money for something that benefits Americans - education, health care, technology, infrastructure....
And another tax cut to pile on the already staggering Trump-induced deficit?! When it comes to running his personal businesses, Trump's "get out of jail free" card (no pun intended) seems to be bankruptcy - and defaulting on his creditors. No surprise that he's running the country with the same fiscal "plan."
No words.
Certainly will add to the deficit....
Soooo, wait for it...yes here it comes...cue Paul Ryan:
"We must cut entitlements to be fiscally responsible....."
1
"...we will look at what tools at Treasury we have to do it on our own and we’ll consider that..."
There are plenty of "tools" at Treasury right now.
3
Don Trump is gifting his invisible over rich friends who actually run this country. Slowly the veil is being lifted on the Davos Clan who serve at a Trump’s pleasure, to insure that their version of the world continues, as Trump continues to play President in the romper room atmosphere of the White House where reality does not exist!
1
The Trump regime won't be satisfied until they can crown Donald king, and hand out titles, land and property to all the wealthy US oligarchs. Sir Mnuchin, Lord Pence, Baroness DeVos. The only people who will be paying taxes will be the serfs and peons of the middle and lower classes to maintain them in hopeless poverty.
In private equity, dividends to owners are often paid from the proceeds of leveraged re-capitalizations of companies. This is SO cool. This means that the wealthy and powerful can set up a company that they own to FAIL, by borrowing money, paying themselves a fat dividend, and risking bankruptcy (i.e. borrowing capacity thus tapped out, thanks for playing).
Who's up for ANOTHER leveraged re-cap of Uncle Sam????
I'm curious if all you Trump supporters out there still manage to keep your belief in your Dear Leader when he makes such naked grabs of wealth for the already wealthy? Do you still assume he has your well-being at heart while America slides into bankruptcy?
3
By this logic, social security checks should be reconfigured to allow for inflation. The $12,000 I earned in 1980 is now worth $38,000, so my monthly check should be tripled. Any politician recommending that would be laughed at or dismissed as a socialist. But this move to make the rich even richer is given serious consideration. When will American workers wake up?
1
Actually you're wrong, although understandably. The computation of your benefit indexed each year reflecting wage inflation up through age 60. The highest 35 post-indexed earning were then totaled. And from age 62 the resulting amount rises via a COLA. There are a few more details. The point is that Social Security thoroughly reflects inflation for the years working and during the years of retirement. So if you were correct you'd be doubling the inflation hedge that Social Security gave you.
1
I'd urge NYT readers not to get all worked up over whether this can be done by Executive branch fiat via the Treasury or if it mus be done via the Legislative branch.
Given that the GOP controls the Congress and White House, that's a distinction without a meaningful difference. If the GOP wants it done, it will be.
It's clear which direction the pendulum is swinging - it needs to reach the end of its arc before it can swing back.
One way to save money would be to get rid of Congress and the Senate. Trump prefers to rule by edicts so a lot of money is being wasted supporting a legislative branch of government particularly as it seems unprepared to participate in governing.
1
Ah yes, the betrayal of working class Americans by their purported saviors: Trump and his administration. This is how the Greedy Obnoxious Patriarchy party cares about 99% of us. Tax breaks for the ultra rich, unemployment, higher fees, a dirtier environment, and more problems for us. Apparently the rich are in more dire straits than most of knew. They need more government hand outs while we are forced to pay the bills in terms of program cuts, potholed roads, lousy airports, etc.
Thank you so much for reminding us that in GOP America average means nothing.
3
Well, now you know why he’s been carrying on about the wall again. He’s distracting his base. It’s super easy and the Republicans then get to do what they really have wanted to all along to the rest of the population, loot the coffers and then say, sorry there’s no money left for entitlement programs. He said he loves the uneducated, the reason being they’re so damn easy to fool and distract.
1
The consequence of inflation is to overstate real capital gains and understate real capital losses. If I bought a capital asset 10 years ago for $1 and sell it for $1 today, I have a real loss because today's dollar is worth less than the original dollar, but I have no recognized loss for tax purposes. A justification for taxing capital at a lower rate than earned income is to adjust for these effect of inflation -- overstating gains and understating losses --on capital investments. Perhaps we should adopt the practice of adjusting cost for inflation, as the Administration suggests, but tax capital gains at the same rate as earned income. (And to advance fairness, we should probably tax unrealized capital gains at death to minimize the tax benefit of selling losing positions and holding winners.)
Another coup for "alternative facts"! Just redefine the word "cost" and the rich can get richer!!
4
Umm? Do you people really believe others can get rich honestly?
2
A tax cut geared solely for the president and those other wealthy denizens of the swamp.
GOP, if you approve this, you will go down in history with Quisling.
2
Making America great again - for rich white people.
5
Now the old, rich white guys are just blatantly looting. They clearly see that demographics are not on their side, so they are grabbing whatever they can before their inevitable demise.
7
It is time to remind everyone ......here are some of the lyrics to Steppenwolf’s lyrics to “Monster” From Nixon era criminality.
“And though the past has it's share of injustice
Kind was the spirit in many a way
But it's protectors and friends have been sleeping
Now it's a monster and will not obey
The spirit was freedom and justice
And it's keepers seem friendly and kind
It's leaders were supposed to serve the country
But now they won't pay it no mind
'Cause the people got fat and grew lazy
Now their vote is like a meaningless joke
You know they talk about law, about order
But it's all just an echo of what they've been told
'Cause there's a monster on the loose
It's got our heads into a noose
And it just sits there watchin'
Our cities have turned into jungles
And corruption is stranglin' the land
The police force is watching the people
And the people just can't understand
We don't know how to mind our own business
'Cause the whole worlds got to be just like us
Now we are fighting a war over there
No matter who wins, you know we can't pay the cost
'Cause there's a monster on the loose
It's got our heads into the noose
And it just sits there watching
America where are you now?
Don't you care about your sons and daughters?
Don't you know we need you now
We can't fight alone against the monster
America where are you now?
Don't you care about your sons and daughters?
Don't you know we need you now
We can't fight alone against the monster.”
7
With these people, greed is God.
4
The only possible good news here is that Steven Mnuchin is incompetent and may not be able to do the paper work for this little maneuver.
2
Steve Mnuchin can see a lot more money in his future, and his lovely wife is licking her lips, and rubbing her perfectly manicured, bejeweled hands together. At least half of the rest of us? None.
8
It is so liberal of the NYT to have such concern for the poor. But are these poor people one and the same as the deplorables the NYT and its liberal readership had such contempt for during the campaign? I can recall many a blog putting them down and criticizing them for just not keeping up with the skills necessary to get ahead in a technological global economy. There was nothing for them to do but to turn to their guns and religion. Now liberal hearts are just bleeding for them. But too late. They already have jobs thanks to Trump, so you can spare us all your fake show of concern for the poor in these blogs.
@Ed, voting for Trump after he refused to divulge his tax returns full explains to me why his voters are bitter nihilists seeking more company in their own misery.
2
Let's just give everything to the super wealthy and move. Seal the borders and they have to live here alone and cut their own grass...grow their own food....dig their own grave.
11
I hope those who supported this grifter are hit the worst.
4
The super rich are Trump's real base - that's who he's working for, not the Trumpsters.
But he likes the Trumpsters because they buy his schlock.
2
MAGA only for the top1%!!!
7
Squirrel....wait there's a pile of money he left behind! Grab it before anyone notices.
Mnuchin wants to fleece Social Security's future, buy off the wealthy Donor Class so they'll ignore Trump's conspiracy with Putin, and do it before the Democrats take over the House.
6
The sheer magnitude of idiocy it took to vote for the most transparent crook on planet Earth boggles my mind.
11
And those voters will suffer grievously, my only consolation.
Sorry I won't be around to see it happen.
Also, this proposal would make it politically easier for future governments to "inflate away" the debt, since rich people would care less about inflation.
4
I would have thought that we would have learnt our lesson with the bank bail-out and no criminal charges arising from the great recession.
But no!
I thought in the small and soon expiring tax cut for individuals, we would also see through this "trickle up" - while corporations and the 1% take the lion's share of it. Middle class is left with higher gas prices, inflation, expensive healthcare etc. that will more than eat up the small $25 increase in weekly pay-checks.
But I fear we won't!
Wouldn't it be nice if
3
Isn't this what all those Republican voters expected when they elected Trump and a Republican controlled Congress? The rich will get richer and the Middle class will find themselves living at a much lower standard than their parents. A revolution will start forming when the masses realize how badly they have been played by Trump and his congressional supporters.
5
Someday, maybe, the electorate will wake up to the fact that the "common man" has the power to vote control away from the oligarchs. If only more would use the power of the ballot box to their own advantage rather than that of the 1%.
2
We are rapidly on our way to becoming a 3rd world country with a small wealthy group in power and the rest of us going deeper and deeper into poverty. The wealthy have no right to disparage welfare and the safety net, especially when they have worked so hard to give themselves more tax breaks at the expense of everyone else. Policies like these are how dictators like Hugo Chavez get elected. At some point, the poor people will get tired of being neglected and demand a radical change. Throughout history the proletarian party deposes and the wealthy and powerful which leads to the fall of empires such as Rome and the Han dynasty. The everyday person grows weary of not being in control. The concept of property is what divides us as a society, and to place those with much of it in power for the reason that they already have power is ludicrous. Those with needs are the ones who should decide how policy is formed.
3
Indexing capital gains is entirely logical and is widely used throughout the world. Taxing illusory gains which rise from inflation is amoral and penalizes not only the rich but average property owners.
Well, gee, John, maybe we ought to be adjusting wages and indexing Social Security contributions for inflation, too, if it's so dang immoral.
3
To be fair, then, people who keep cash in a mattress should be able to declare a "loss" (due to inflation) when they finally spend it.
3
Remember when laws and taxes were the province of the Congress of the United States?
How do you pretend that this man is not already grabbing authoritarian power when hardly a day goes by that his administration doesn't usurp yet another role of Congress to be done by executive order or fiat, and Paul Ryan and Mitch McConnell don't force the Congress to roll over and play dead?
The reason Americans believe their democracy is inviolable and a birthright is because they have a notion, vague though it may be in current K-12 education, that there are three equal branches of government which preclude usurpation of power by checks and balances.
When they finally haul the perpetrators of this destruction of the government of the people, for the people, and by the people out of the government and give them their just punishments for conspiring with a foreign power and misuse of office, Messrs. Ryan and McConnell should be perp walked as well, and should go down in history as destroyers of the American Experiment, referenced on the same page of history as Nero.
7
I actually think this would be a good idea....... we shouldn't tax interest earned either! (Why should folks be penalized for being frugal and investing or saving money)
The only way this should be considered is as part of a revenue neutral tax package which would include (maybe instead of ) the "tax cuts for the rich" already passed
Trump wants to give $12 billion to the farmers he hurt by his ill-conceived trade war. He desperately wants that "big, beautiful ($70 billion) wall". And he wants that $30 million military parade (for some inexplicable reason). But he doesn't want to pay his taxes, and he wants to help out his wealthy friends. Guess who will be footing the bill? You and me, and all patriotic middle class tax payers across America. Are you tired of winning yet?
4
Mr President,
If you want the be the greatest President since George Washington, give America universal health care.
Even I would vote for you, maybe.
2
Our government is LONG overdue for a complete turnover in management.
2
Do this, remove the cap on income subject to Social Security taxation.
8
"I think we ought to look at not penalizing Americans for inflation,” said Representative Kevin Brady of Texas, the Republican chairman of the Ways and Means Committee, who said he would like to see the Treasury Department make the change through regulation.
We should be focusing on raising minimum wage to adjust for inflation and trying to narrow the huge economic inequalities in America.
Since it was last raised in 2009, to the current $7.25 per hour, the federal minimum has lost about 9.6% of its purchasing power to inflation.
https://inequality.stanford.edu/publications/20-facts-about-us-inequalit...
http://www.pewresearch.org/fact-tank/2017/01/04/5-facts-about-the-minimu...
9
One thing we must demand of our newly minted Congress in November: a law clearly limiting executive power. Obama set a poor precedent by exercising it to get around a recalcitrant Congress, and now we have Trump, who is simply abusing it to the Nth degree. He has a sympathetic Congress. Why doesn't he go to them with legislation?
6
Donald Trump is running this country in the same way he did, when he filed for those 4 bankruptcies.
6
Unfortunately, 88% of Republicans will lovingly support this.
4
“I think we ought to look at not penalizing Americans for inflation,” said Representative Kevin Brady of Texas
Then raise the minimum wage to account for inflation.
4
It's about time someone stuck up for the one percenters.
We are the forgotten ones.
All of these social programs to help the poor, the immigrants, the starving children, those with no healthcare.
What's in it for me?
Finally I'll have some extra cash to pay for the garage space I need to keep that extra car I'll buy.
Thank you GOP.
3
Only when both sides of the 99% -- Democrat and Republican -- come together to confront the real enemy, the exploitative super-rich, will America be truly great. They know that and that's why they make sure we stay busy fighting each other with every wedge issue that can be imagined.
8
I hope (but am not too confident) that the GO/Tea Voters ... and those that "sat out" the Presidential Election will realize that the Wealthy, who really run this government, are getting everything they paid for! And the Republicans? Silent!
2018 Mid-terms are coming ... how many will vote out corruption?
3
If you are a Democratic voter, this article should make you very, very VERY happy. I mean ecstatic happy.
If Trump actually gets behind this politically, he is done for in 2020, and the GOP is gonna take a beating in the mid-terms.
Seriously people, this is how Trump will lose millions and millions of Independents and working class white male voters.
It is 45's death knell.
6
@EH Trump will convince working people it will help them even though they presently get an automatically stepped-up basis for all assets inherited.
@EH
I think he could barge into his cultists' homes, beat their grandmothers over the head, seduce their wives, stomp their children and steal all their assets and most of them would still vote for him over a Democrat.
Her it comes, High inflation.
3
"...despite strong economic growth, corporate tax receipts have plunged and the deficit has soared...." This is the only index that really matters.
Investors will continue to amass holdings and wealth regardless of government entitlements.
But when will the other 99% be able to purchase their first homes, pay their rent and utilities, afford to own cars, and find jobs with living wages? Clearly, this is more significant than largesse to those who already have theirs.........
O lord, for how much longer must we endure the destruction of America by the avaricious? Resist! Begin today by turning your flags upside down. Show Congress, the Cabinet, the Supreme Court, and the Trumpet where true Americans--the majority-- stand on our government's neglect of us ordinary folk who earn less than $40,000/year and its disdain/disrespect for those who earn less than $15,000/year, as well as its hatred of the tired, the poor, those yearning to be free of unrest in their former countries....
Is this still America? God bless America, land that I love. Stand beside her, and guide her through this nightmare......
4
If this is a tax cut, why is it being proposed by Treasury, rather than the IRS?
3
@Gloria
A short answer is that the Treasury is one of the major departments of the U.S. government. The Treasury is responsible for oversight of U.S. fiscal and monetary policy, including advising the president and members of Congress about such matters.
The head of so extraordinarily important a federal office is selected (nominated) by the president; is confirmed by the Senate; and beomes a member of the president's Cabinet with the title "Secretary of the Treasury".
In contrast, the function of the Internal Revenue Service is mainly to supervise the collection of federal taxes. it does not determine the policies that dictate the amounts of the taxes for which individual businesses and persons will be obligated.
Everyone knows The Rich are hurting, and need our financial assistance. Trump is their man.
4
This will benefit the Trump voters in the wealthy suburbs that have been identified as leaning Republican in the upcoming election. They are trying to buy votes for November. The 12 billion giveaway to farmers was to shore up the farm vote; this giveaway is to shore up the wealthy suburban vote. They are both crucial voting blocks for Republicans, because they are reliable voters. Losing them in November would spell disaster for Republicans, so they are trying to figure out how to bribe their voters.
Sickening, repulsive, grotesque...there are not enough words to describe the reprehensible lengths this administration is going to in order to purchase voters' support. I certainly hope this backfires on them, and that people of good conscience will finally say that they've had enough of this type of corruption. Their inability to govern for the people and by the people has reduced Republicans to bribing their constituencies with cold, hard cash.
3
So there's no money to relieve student debt, no money for healthcare, no money for public schools, no money for public infrastructure, no money for veterans, no money for ensuring election scurity, no money for job training, no money for seniors dependent upon Social Security and Medicare, no money for sick kids, no money to protect the environment - heck, there's no money for the right-wing's big, beautiful wall - but, sure as blazes, there's plenty of money for a second, enormous tax cut for the Very Important Rich.
Socialism for the wealthy, but not for the rest of us. Now we get it.
6
The Republicans just don't have the guts to eliminate capital gains taxes.
1
The greed is stunning. Absolutely no shame.
5
MORE tax cuts for the rich? Bypassing Congress? As a gaping deficit looms?
The willful greed and destructiveness of this gang never ends!
And pretty much ALL respectable economists criticize this reckless series of moves. It's definitely not some
"liberal critique of Republican tax policy"! It's a sane, across-the-board critique of reckless right-wing tax policies
6
This article appears to stating that Mnuchin would try to use the 2002 Supreme Court decision as a basis to make changes to capital gains taxation. However I noticed that the article quotes the ruling stating that “regulators have leeway in defining “cost” .”
Is the Treasury Department a regulator? No. It can enforce federal regulations not implement. So if Treasury publishes a different definition then there is no effect on actual tax code because they are not a regulator and the IRS would simply continue to apply the current definition of cost , correct?
If anyone sees this I would be interested in your opinion.
2
Sounds complicated--will we be able to figure this out on a postcard?
4
And the rationale for this is what exactly?
6
The normal political calculus of rewarding your friends and punishing your enemies takes on a whole new meaning when the President seems to be his own best, and perhaps only real friend.
2
This is for all the Trump supporters who actually believed he was going to give you a break.
You gave him your votes.
Now he is taking your money.
Remember this in November ... and beyond.
5
“We are studying that internally, and we are also studying the economic costs and the impact on growth.”
That is the funniest thing I've heard. Tax cuts are the number one deal for all Republicans. The transfer of the cost of government to the people with no money is the aim of the Republicans. If you want some excellent analysis you can watch this clip.
https://www.youtube.com/watch?v=fm6mn9p2g18&t=30s
1
IRS collections are already down by about 30% this year and we are on our way to a $1 T deficit this year. What is another hundred billion, so long as the "reely reely rich" get some much needed cash.
And to those American workers affected by steel, agricultural and other commodities that are subject to Trump Tariffs …. THANKS for taking one for the team. Don't worry about your sacrifice … it will help the U.S. (or is that 'us') … in the long term.
Thank GOD that the CEO's of the big companies are finally getting record bonuses and compensation packages. Whew!!!
1
The "Base" must be fed. It's hungry for more money.
2
Capital gains are income and there is no reason they should not be taxed as all other income. Under the Bush-it admin, the investor class (who basically own the politicians) get a double break: they can take losses off what they own, even for years after, and pay less than working people when they do well. If in fact we were a society that has an economy limited and stagnating because of a shortage of captial to invest, that might be justified. But the reality is, the concept is beyond ludicrous: start-ups hoping to make your phone find a cheaper way to get the perfect haircut prove that funding the basic processes of real life are not remotely threatened. Why the Dems are too stupid to get Mr Pool Installer to realize that him paying 28% on what he made for working over the weekend, when a gambler in a bathrobe made a big pile guessing on stocks, is bizarre. Time for a new party
5
I guess elections (and the coverage of elections) have consequences
4
Oh, boy, more money for the already wealthy, just what America needs! Of course we'll have to cut Medicare, Medicaid, and probably Social Security, too. Healthcare? Fuhgeddaboudit. All you folks with pre-existing conditions will just have to die, so the rich folks can buy another summer retreat home. This is the Republican Way.
1
The economy is SO GREAT!!!
Jobs are PLENTIFUL. My Mom has THREE!
4
The brazeness of this group is beyond understanding. This administration is simply looting the treasury, and they're doing it in full view of the American people.
It is one thing for people to vote for Trump in the hope that he would make them "sick of winning." It is another to stand by this man and the people he put in positions of power (like Mnuchin) as they simply personally profit at the expense of ordinary wage earners.
The gulf between the haves and have nots is obscene as it is. Trump hoodwinked the entire nation.
He must go.
10
As I have pointed out, previously, Mnuchen is a guy who used to foreclose on unfortunate homeowners, during the financial crisis. It's one of ways he became filthy rich, on the backs of the lower middle class, and working poor. This is another money grab for HIMSELF, as well as his cronies. He dispassionately foreclosed on an elderly woman, for lack of 27¢. This is just one of the most lovely "patriots" running our government. Write to your representatives, and make sure you vote out these destroyers, in November.
https://www.vanityfair.com/news/2016/12/foreclosing-on-a-90-year-old-wom...
2
This in conjunction with the president’s de facto admission of collusion (why would you insist on the legality of something you haven’t done?) is the utter end of GOP credibility unless they do something which they won’t
2
Our do-nothing Congress allows Trump and his cronies to do whatever they want. I am not surprised, nor will I be surprised when artists, journalists and political progressives are put in detention camps.
2
On its merits indexing capital gains makes sense. On its merits eliminating corporation tax makes sense.
It just so happens both taxes are largely paid by higher income earners. There are two concerns: budget deficits and the progressivity of the tax code. With no other changes the former would rise and the latter would decrease.
You might expect the GOP to promote the latter but not until recently the former.
If we're going to index "cost" to inflation for rich people's taxes, why aren't we indexing the minimum wage to inflation?
16
Because in the US, poor people are demonized. Didn't you know that in America, wealth is associated with virtue? Rich people are more valuable than poor people. They count more (in more ways that one).
If you're poor, it's your own fault. You haven't pulled hard enough on your bootstraps. Face it. Poor people are disposable, and this and all the other policies that this administration has pushed proves it. They could not care less about anyone who doesn't occupy their gilded, gated estates. The rest of us can rot.
Consistency is the hobgoblin of small minds.
The rich are in a competition to win, a competition with people like themselves, and a competition between people like themselves and everyone else. One useful advantage is to generate a tale that says that the rich earned and deserve the victories they are achieving. It is useful for the rich to believe this (because it gets rid of any shame or guilt they might have), but even more useful to convince everyone else of it.
The rich are interested in understanding the world only so far as this understanding helps them win. They conceive of the world as an environment that offers them opportunities. In struggling over these opportunities they might destroy or damage the environment, but that just changes the environment within which the struggle goes on. The idea that they should yield some of their power to a referee or regulator that will protect their environment (and keep the financial environment from overheating and collapsing, for example) is not something they can understand; to them it looks like a power grab by a competitor and nothing more.
They do not see themselves as a part of a system that will damage them all if it becomes unstable. The system's possible instability is for them just another business opportunity to be taken advantage of. Limiting their freedom in order to stabilize the system appears to them as tyranny.
This sort of thinking with respect to the planet's temperature regulation systems puts the human race at peril.
9
If it ends being that investors can account for inflation in determining capital gains tax liabilities then hourly wage earners should get monthly pay adjustments based on inflation. As inflation increases, pay should increase.
7
But as inflation increases, money is worth less, so higher pay just keeps up with inflation, it doesn't outpace it. Were you aware of that?
Time for heads to roll.
12
Maybe if Mnuchin's proposal becomes policy, trump will really be worth ten billion dollars.
9
There's another issue here. Capital Gains works as a disincentive against selling. If you remove the tax you remove the disincentive. Any investor who believes that lower Capital Gains might be reversed in the near-term might be inclined to sell, particularly if they're concerned about the longer-term impact of tariffs. A market heading into unkown waters needs add no motivation for people to get out.
3
A couple of questions come to mind. If the cost of a capital asset gain is indexed by inflation over the period held, would this also apply to capital losses? If an asset loses value, would the indexed value be allowed on income taxes? Currently, capital loses are allowed against gains. Assumedly, they'd both have the same adjusted base.
Would the selling price of a capital asset also be adjusted to account for the inflation inherent in it's price? Many stocks increase in value annually to match the inflation rate. The price goes up, but there's no real gain. It would seem if one end of the buy/sell transaction is to be adjusted, the other end needs to also be adjusted.
5
Gains and losses are meaningless unless you sell.
I assume that the Treasury will also index wages. That is, by regulation, it will require employers to raise workers' wages in step with increases in the consumer price index.
14
The article says:
"Capital gains taxes are overwhelmingly paid by high earners..."
This is false, or at least mis-leading. Any homeowner will pay potentially pay capital gains tax on the sale of a home, regardless of income. A lot of middle class people have a significant amount of their retirement savings wrapped up in their home, and a good chunk of that is due to inflation, which this ruling will exclude from being taxed.
Another way the middle class is hit by capital gains is through savings and investment by workers. You don't have to be rich (I am not) to save for retirement, but if those savings are invested in stocks outside of an IRA, when they are sold to pay for retirement, they are taxed as capital gains. With the diminished use of pensions, saving for retirement is a widespread, middle class thing to do and has nothing to do with being wealthy.
Your article is doing a dis-service to the middle class who are also unfairly paying a tax on inflation.
9
@Scott Werden
overwhelmingly is the key word, the wealthy pay roughly 51% of capital gains taxes. And you don't pay capital gains on the first 250K of a house sale/year.
1
@Scott Werden
If the goal is to help the middle class, then there are better ways to do it than by attacking the capital gains tax, which, as the article states, overwhelmingly applies to the wealthy because, as everybody is aware, the wealthy few own most of the capital stock.
That's not saying that the middle class won't see a benefit from this. They will in the ways you mention.
But that benefit is clearly not the goal of this policy. It is only a minor effect.
The ultimate point is that there are other policy ideas, the goals of which are actually to help the middle class, which earns most of its income via labor that is taxed at much higher rates. Those plans would be much better for the middle class than this plan.
Your opinion is basically that the middle class should be happy for being fed scraps without recognizing whatsoever that somebody else would be willing to feed the middle class a much better meal.
1
@Scott Werden
A married couple filing jointly can excluded $500,000
in gains from the sale of a house.
1
But what about our airports stuck in the previous century, our bridges that are falling apart and our trains that in some cases take longer to get from A to B than they did several decades ago? With these cuts, we're going to be waiting a while for the real Infrastructure Week.
16
I wonder how many of these tax giveaways would pass if we made one simple change to the laws: Any tax reduction will not apply any legislator who voted for it.
8
This is not just something that will benefit only the wealthy, as portrayed. I've long thought it unfair to the people who have owned homes in Manhattan for a lengthy period., the sale of their homes meant that that they would not be able to buy an equivalent home elsewhere, particularly those who are not married and do not enjoy a $500,000 capital gains exclusion on the sale of their homes. Basically, if you sell a two bedroom apartment after twenty years in Manhattan, you can purchase a one bedroom apartment with what you are left with after capital gains taxes, flip taxes and transfer taxes. If this were applied to home sales only, I would think it a fair idea.
4
It's painfully obvious that Trump has the keys to the candy store and he and the rest of the Republican party are going to make sure the carry out very bit of candy while they can.
14
Don't worry. Now that there is a low cap on property tax deductions, I can personally assist in funding this initiative. See ? Even the little guys like me can help make a difference.
4
What's next? Making capital gains, interest and dividend exempt from federal income tax to benefit Trump and the 1%?
9
Yes. Didn't you know that's why he ran for president? So he could help himself and all his corrupt cronies and their corrupt cronies and on and on and on, ad nauseam?
Why don't they just cancel taxes for the rich altogether. Why should they have to pay, they're rich for a reason.
9
@mtrav That's the plan.
Rep. Kevin Brady said he thinks we “ought to look at not penalizing Americans for inflation.” I don't recall him, or any other other Republicans, raising the minimum wage to keep up with inflation. I guess he thinks it's okay to penalize some Americans for inflation...like, 99.9% of us!
31
Hey, I get it. Inflation does eat away at your securities investments and "it's not fair", but every darned investment of any sort is diminished in that way. If I had invested in, say, Amazon early on, I would LOVE to get a tax break.
What we have to ask is if this is a good time to consider *any* $100 billion tax giveaway. This administration and Congress are running up the federal deficit tremendously of late. If they add another $100B, I would suspect that those fools will be coming to us voters and crying about how much our "entitlements" are costing them and ask us to make hard decisions on how "we" can reduce this crazy dept.
8
Does this coincide with winning back the Koch broth support for the GOP, after Trump’s earlier tweet? A larger version of gifting the farmers (and these are certainly large scale agri-businesses, aren’t they?) with 12 billion to ease this administration’s self-created “problem”? Should we just all gather at mass transport centers with all our assets and dump them into train cars headed to the residences of the nation’s (globe’s) wealthiest?
9
@MPW
A concise picture of where we're heading. Powerfully stated.
What about the capital gains I have been earning in my retirement accounts that will be taxed as ordinary income when I withdraw my funds? Will those be indexed for inflation? Likely not since it won't have a big affect on the rich. That seems to be the litmus test: will it be a big benefit to the already rich?
14
Sheesh! Doesn't the 1% already have enough? Do we really have to give them everything? Some of us "little people" might enjoy some bridges that aren't crumbling or, perhaps, a living wage every once in awhile. Maybe decent health care that we can afford. But, I guess it's more important for the ultra-rich to have even more than it is for the People to have decent lives.
14
@lynchburglady
Viewing the 1% or 0.1% as a single entity is misleading. The uber-wealthy are individuals in constant competition with each other. In order to stay at the top, too much wealth is never enough.
7
Unfortunately, not all Americans read the top story in the New York Times. Unfortunately, people working two jobs and raising a family are too busy to join this discussion. Okay. I get it! Trump is covering his base. First give the farmers $12 billion in assistance. Now, they are happy. Then, give the wealthy $100 billion on top of the $150 billion/year tax cut last year, which largely benefits them. A better way must be found to reach all people and raise their understanding. A lot of people who voted for and still support Trump are being left out. They may be ill-informed or simply refuse to believe it.
9
@Ashwood8 I have heard these folks interviewed on NOR and elsewhere. They refuse to believe it. Why? That goes beyond my comprehension of this segment of the population.
Now you see who Trump's real base is ... who is more important to him ... farmers at $12 billion or fatcats at $100 billion?
Math never lies.
The economy is supposedly doing great, so why the tax cuts for the rich? It's pretty much, steal everything before we get caught. Craven thought process, but that's our government. Not for the people, or by the people.
15
There was a time when a headline like this would create outrage, not just by NYT readers but by the entire swath of the country that isn't the northeast corridor and Silicon Valley. What has changed so fundamentally about who we are as a nation that the executive branch feels sufficiently emboldened to even consider this? The script for the response has been written and well-rehearsed - tax cuts are good, regulations are bad, more money at the top means more jobs, etc. We wring our hands and furrow our brows trying to figure out why people who otherwise seem reasonable are willing to buy into this narrative. Maybe it's the internecine war that Fox News has cultivated over the years where Americans in blue states are the enemy of those in red states. Maybe it really is a sense of disenfranchisement by middle class voters who are desperate for any sort of change out of Washington. Whatever the reason, the Trump supporters will support Trump and only the Republicans who are facing tough reelection campaigns will even touch the issue when pressed. These are dangerous times for the United States, the path being laid down now will not be easy to undo even if a rational Republican or a Democratic president and Congress take up the reigns. And maybe that's the problem - politicians and politics have been so corrupted by the monied interests and the need for reelection that things that should change cannot be changed because a politician with a spine is the rarest animal of all.
15
How about simplifying the tax code by eliminating the concept of capital gains altogether. Income is income. The only "capital gain" that has any validity is associated with selling your personal residence, and then with rules so it too is not abused. Uncap the taxable "Social Security" limit, and be much more progressive in the tax rates. And of course, change the inheritance tax rules back to $1 million, adjusted annually in accordance with inflation, but make have it apply to each individual (only 50% of the assets of a couple should be counted towards the $1 million individual cap, so even assets left to a spouse over the limit are subject to the tax, and make the tax rate progressive as well. Yeah, Medical Care (not insurance) for everyone is essential. We need to get real.
6
Prior to 1921 the Supreme Court held that capital gains could not be considered income subject to taxation at all. Don't be surprised if that claim is resurrected once the Republicans have installed their fifth man Kavanaugh on the Roberts Court.
8
This would be a gigantic victory for the administrative state.
3
Capital gains taxes should be indexed to inflation over the time the investment was held. If a stock was purchased 20 years ago and sold today for a small gain, the owner has less purchasing power now than when the stock was purchased. I have no problem raising taxes on the wealthy and do not believe the Trump tax "reforms" are in the best interest of our country but indexing capital gains to inflation is one "reform" that makes sense.
Alan Weiler
5
Rich or poor, inflation adjustment was missing from our "tax equation for a long long time. Tax should be fair.
To be fair and pay our debt at the same time, I wouldn't mind if capital gain would be taxed as other earned income, if it is adjusted for inflation.
9
Maybe it is time for the Republican power structure to start dressing as Nigerian Princes and just ask their base to hand over their banking information with a promise of fabulous returns. Seems like the GOP base would go for it.
23
@Virginia
"Maybe it is time for the Republican power structure to start dressing as Nigerian Princes and just ask their base to hand over their banking information with a promise of fabulous returns. Seems like the GOP base would go for it."
Yes, Trump is sitting on a fabulous asset worth billions and it's not the Trump name. He has the Trumpster mailing list.
They'll stampede to buy the cheapest schlock at the most wildly inflated prices and send their friends back for more.
The Trumpsters are a goldmine!
There's some logic to this. Unfortunately, because the benefits of applying this idea help only a small fraction of the population, it is a socially repugnant proposal. If everyone benefited equally in dollars (not in %), it would have a much different social impact and greater acceptability. Then again, picking the affected asset classes could prove tricky.
3
As professors Graetz, Hemel and Kamin and Sen. Wyden point out, this scheme is legally problematic. But the administration could achieve the same magic as it did with tariffs by invoking the all-powerful rationale of national security.
After all, if Trump and his cronies continue to impoverish our nation to line the pockets of the filthy rich, other nations may be less interested in conquering us. This will be especially true if we already belong to Russia.
13
I'm not a fan of this "Don" and his minions. But there are many ordinary retirees, who have had their homes or investment properties for many years, that might benefit. So, unlike so many of the "The Don's" money grabs, this one is at least worth discussing.
Talking now on the other side of my face, I believe taxes should be based on where the money goes to and not where it comes from. So only individuals would get taxed, not institutions like corporations. Capital gains would be considered just ordinary income and taxed accordingly. And tax brackets would be very, very progressive, like they were during Republican President Eisenhower's years.
Sum that all up and you get: (1) Corporations, that went offshore to avoid taxes, return; (2) The very rich pay their share of taxes even if all their income is from capital gains; (3) The rich (hopefully) put excess income into raising wages and benefits instead of it being taken by taxes, (4) the broader tax base lowers low to middle income tax rates.
There are more advantages. But this is meant to be a comment, not an article.
2
Wowee! The wealthy Republicans are most definitely getting rewarded for all the money they spent in Campaign "Financing" to buy the last election for their Republican representatives and President.
14
Making Mnuchin the treasury secretary was like putting the fox in charge of the hen house. In all probability Mnuchen will no doubt personally benefit from another large tax cut for the wealthy. Does the man have no conscious or does his zeal to increase personal wealth for himself and other rich compatriots have no boundaries?
When his name appeared on US currency, he lost any sense of decency he might have had.
He will cross a red line as treasury secretary in proposing another tax cut for the rich (like himself). He should be impeached for his policies of robbing the poor and giving it all to the rich. Here's a solution: Give the rich all the tax cuts they want, then give them a tax rate of 75%. Then we can use the money from taxation to pay for infrastructure improvement instead of going into the pockets of people like Mnuchin who use it to accumulate personal wealth to the detriment of the country.
10
Once again, the president is using his office and political body to advance his personal business objectives. Nobody will benefit from a defangment of capital gains tax protocols more than owners of real estate. I mean, so what if this is done at the expense of the 99%? America is being stolen from the electorate at break-neck speed with policies like these.
10
There have been numerous studies done that say that tax cuts do not pay for themselves. The money paid to the Treasury does not recover to the pre-tax cut level. This is just more conservative dribble as they try to help out the very wealthy and do nothing for the rest of us. Of course, what else would you expect from Trump? Hopefully, the democrats will take the House in November so that we have divided government again.
7
The Republican long con continues. Despite decades of evidence to the contrary, Republicans continue to push for tax policies that advertise as "paying for themselves." No tax cut has ever paid for itself, and no tax cut ever will. You can go through all the revenue calculation contortions you want, but in the end if you provide corporations and investors with a way to reduce the amount of taxes they pay, they will pay less taxes. Less taxes will always mean less revenue. Even a toddler knows that if you take away half his jelly beans he does not now have more jelly beans.
None of this would be all that problematic if the Republicans weren't so disingenuous about the whole thing. If they would simply show the courage of their convictions and come right out and say it --- We're doing this so we can eventually use the deficit as justification for gutting Social Security and Medicare --- at least we could have an honest argument about it and, who knows, maybe they could make a convincing case for their plan.
But, of course, that's nonsense on all counts. First, the Republicans will never be honest about their intentions because they have been richly rewarded for being dishonest. And second, they know that actually touching the 3rd rail of what they wrongly call "entitlements" would be fatal.
And so the Republican long con continues. Why not? Look what it's gotten them.
9
The current administration wants to go back to the 'good old days', remember in the 1950s when the highest marginal tax rate was above 90% and the capital gains tax was 25%. Of course, they conveniently ignore these facts.
8
The truly rich pay little capital gains tax ... they borrow against capital when they need cash and pass it on to their heirs tax free when they die. This change would have it’s greatest impact on middle class folks trying to get ahead. Might not be the answer you want but it’s verifiably true.
2
Come now! The wealthy are wealthy and more tax cuts only exacerbate the issue of the equitable income distribution. We need to consider our citizens in need and begin the process of reinstatement fairness in our tax system. And, by the way, I would benefit from this ridiculous proposal.
5
And this is the reason Mitch and Paul are staying silent.
Impeachment? What impeachment?
Only Trump can behave with utter disregard for the 99% and still get the support of these two spineless Republicans.
10
Time to wake up republican voters. Your party doesn't care about you. It only cares for the wealthiest of the wealthiest. Republican voters, stop being pawns of the party. Drain the swamp in November.
9
Don’t forget it’s also a gift to the rich liberal elite who will despise Trump just as much after this tone-deaf idiotic boondoggle.
All the Republicans trying to sell the Stock Buyback Bill of 2017 must see how this would increase the political headwinds into a full-on gale.
Bumper sticker: FEED THE RICH. VOTE REPUBLICAN.
6
Another stink bomb from this administration which may dominate the mainstream media enough to draw attention away from the litany of investigations it is undergoing. The heat is on.
7
Where is Socrates of Downtown Verona NJ?
Sure could use some of his insightful, biting commentary...
3
The last convulsive, grasping , act of greed.......as the Don the Con regime realizes ......their con game to feed themselves and their "friends" at the trough of public funds......is AT AN END !
Soon , the regimes robber barons and Trumps Republican co-conspirators .....will help set the latest fashion trend in orange prison jump suits........being designed for them by Special Prosecutor Mueller.
5
Trump and his minions keep plundering the treasury. And his supporters cheer him on, while he cuts their life support. How can such a large fraction of our voting public be so dumb!
9
STUPID ! STUPID ! STUPID! ------- Tax Payers------Trump Administration thinks.
1
Indexing capital gains for inflation (or at least having this option) is a great idea, but it would be entirely illegal for the Treasury to implement it by decree.
Another reform that is overdue is to abolish the distinction between long-term and short-term capital gains. Gains on pass-through income should be taxed the same as wage and salary income regardless of term, while those on investment in C-corporations already taxed at the corporate rate should be taxed at a lower rate such that the total burden is equal to that on investment in pass-through income.
But again, this reform should be enacted by Congress, not by the Secretary of the Treasury.
6
Those poor, poor wealthiest. No wonder you feel their intense pain, and the unfairness.
If the estate tax is abolished, and the rich get further tax cuts, we will in the United States have re-established the very aristocracy the Founders fought a war in the 1770s to throw off. Amazing greediness it is.
14
Oh, all you whiney liberals, don't you know that GREED IS GOOD?
WELL, Gotta go check the market...Who sez America isn't great again??? MORE, MORE, MORE 4 ME, ME, ME!!!!
7
The Swamp Lives!!
12
Do these people have a death wish? Guillotine fetish? A longing to be chased into the sea by hordes wielding torches and pitchforks?
14
It turns out the $100 Billion tax cut for those greedy blankety-blanks who live in all those blue voting precincts is just a ten year guess by an Ivy League think tank. That's just $10 Billion a year. The Times missed a real opportunity to really bash Trump. The Times should have claimed it is a $ Trillion tax cut for the Coastal richies, and then explained at the end of the article that it would take a century to rob the poor of the tri$$ion. C'mon, Times. Get your stuff together.
Is this a dog whistle to the old Far Left Occupy crowd ? Hope America will not be occupied by those Democrat hordes again. ( wife )
2
Maybe the Trump Administration should be mulling over what a guillotine sounds like.
9
@Julie: Yes! I can tell you what it sounds like: THWACK! And then the head rolls off the neck, and into a bucket, or onto the floor...whatever. If I were the trump administration, I would mull that over, HUGELY, as you have suggested. But don't you know that people like this NEVER think anything will harm them or stop their corruption? They probably all think that they are somehow going to live forever, too. Must be why they think that they need more money than 1,000 people can use in 1,000 lifetimes.
1
Prepare your pitchforks.
16
I know there certainly won't be any account for inflation made on my student loan interest rates. Fab.
12
Be careful what you wish for. Inflation helps you, as you’re paying back with “cheaper” dollars.
How about let's start with indexing the minimum wage to inflation first?
14
I will vote for anyone who will fight for all income to be taxed as ordinary income
It is outrageous that business owners and investors are taxed at lower rates than workers.
I don’t begrudge anyone their wealth,
Just their greed. There rational reason for different lower rates
16
This is crazy how the Trump Administration and their aristocratic buddies can decide how our money is spent without putting it through Congress, who I would hope puts Americans before the rich. America First?? More like (Rich) America First.
12
Thanks to last year's Trump/GOP theft posing as "tax reform", the maximum federal tax rate on ordinary income (wages) is 39.6%, compared to only 20% on long-term realized capital gains... Our once great country rewards wealth 2 times more than actual work... Which is ludicrous.
The wealthy are already deadbeats. And this additional proposal is nothing short of deplorable.
The term "deplorable" is synonymous with Trump, the GOP, and ALL who continue to support them.
10
It is now officially the Republican National Debt.
13
The art of rhetoric is a great tool. Trump and his thugs want to convince the middle class and the poor that the infamous 1% is rich, but not enough. They need even more. They eventually don't care if you work three jobs, struggle with poor health, one meal a day and a limited education. They want you POOR because, as Pence would say, god (his god) made you unprivileged and you have to accept the suffering. This Middle-Age idea is too convenient for the wealthy and Steve Mnuchin will work hard to destroy even more the fabric of society. What the GOP is, after all, if not an exclusive club for wealthy and greedy people?
9
Fill your boots!!
I'm only surprised it's taken them this long.
2
This is another ploy by the ultra-right wing billionaires, Kochs et al., who control Republican thought and deed to destroy any vestiges of social progress made in the past century. Medicare and Social Security are anathema to these corporatists. They want massive budget deficits to justify defunding these key programs for the middle class worker. Trumpists, who will lose mightily when these programs are trashed, can only cheer for their hero Donald Trump who laughs uproariously at their gullibility behind their backs.
Don the Con filling his own pockets and the pockets of his rich buddies at the expense of the American people. Welcome to the GOP!
6
Trump will not rest until he takes everything he can from the working class and give it to himself and his rich friends. It's shocking how little outrage there was over the tax bill. And you know this one will become law too. And the so-called republicans with a conscience (oxymoron) voted for that tax bill!! All the middle class taxes are going to go up in a few years to pay for all this - PLUS - we will be stuck with a multi-trillion dollar deficit. The robbery will continue, folks. Reverse Robin Hood.
6
So many posters here are supporting this idea because “poor people have capital gains too.” My god this ignorance or, perhaps, disingenuousness is shocking. Shocking that one would make the claim and shocking that one would think others would believe this claim. The Trump Logic is infecting the population at large.
12
Makes perfect Trumpian sense. Trump said he wouldn't benefit from the Republican tax cut, that it would cost him a lot of money. We know when Trump makes such statements, the opposite us generally true.
Well, estimates are that he will save millions to billions in taxes from reducing tax rates in the tiers, from elimination of the alternative minimum tax, from pass through provisions for LLCs, and from increasing limits on the estate tax. The only thing he didn't get was a reduction in the capital gains tax. So, he is now trying to get that via Executive Order.
Stop him - Vote in a Democrat controlled House
5
Stock ownership today is not just for the wealthy, if you have a 401K you have stocks and a majority of the middle class have a stock portfolio in addition to their 401K's. Indexing for inflation makes sense as one can do it for their 401K so why not stocks? This would create a large infusion of US capital into the market and makes sense. The SJW's will hate it because they think they know best how to spend everyone else's money buy hey, we are not a socialistic country, at least not yet.
4
@MJS
What are you talking about?
401(k) withdrawals are taxed as ordinary income when you withdraw money in retirement. There is no inflation adjustment for a 401(k). Inflation has nothing to do with a 401(k) and taxes.
Capital gains are already taxed as a lower rate than ordinary income.
2
Yes, the tax is deferred till you receive a distribution. The whole idea is that in retirement your income will be lower, and you will presumably be in a lower tax bracket.
The republicans eat, sleep, and breathe their one rule: TOO MUCH IS NEVER ENOUGH.
8
So, it is right to adjust massive corporate profits and dividends for inflation, but not incomes based on actual work?
Anyone who works for a living and continues to vote for this party of thieves, liars, and traitors IS the problem.
8
Well, I'm with Trump here because the wealthy are the new poor. Every single one of them, except for one, are poorer than someone else. That is very painful for them.
5
We as Americans are raised from our youngest years to fear and despise socialism and communism. I think we should add oligarchy to this list as quickly as the school books can be printed. This president seems to view America as a kingdom rather than a democracy, the democracy part only sneaking around in the rhetoric at election time to secure the votes to perpetuate the kingdom. When are we finally going to see this emperor’s ragged new clothes for what they are?
3
Beware of falling trickles.
4
These guys make Gordon Gekko look like Mother Teresa.
14
Any day now we're gonna get that amazing infrastructure bill. Any day now. Promise.
First, we need to give back $$$$$ to the 10% that are struggling to finish renovating their 3rd home. Sooo expensive.
Then we have to build that wall....
The revolution will be televised come November 6th.
5
Drain the swamp?
2
Question for The Low Information Base:
Hey Base- do you think The Don and Munchkin (and their expensive, wrinkle proof wives) give a hoot about you?
Ha! Stop listening to bought-and-paid-for shill and know-it-all high school graduate Hannity, stop blaming brown people for everything, and start looking at your family's future. (as in education; decent health care; clean water, jobs with a future; etc.)
Then ask yourself some tough questions - like what is Donald really doing for you (the tax cuts were never intended for you, and you can't take trump's surplus of hate and resentment to the bank.)
(first question to ask ? WHY wont he release his taxes? No other POTUS has ever refused.)
You have been sooooo conned.
12
Liar in chief and his clueless Henchman Steve M are just taking care of themselves and the top 1% uber wealthy and the rest of the country gets left behind and the federal deficit skyrockets- the alleged shell of the republican party has lost it sense of direction and principles by allowing the treasonous / traitor and his Putin loving cronies to immerse this country in the trumpian swamp where no sane or moral people exist.
4
They NYT reporter obviously does not realize that the stepped up basis rule is the rule that save millions of people from having to pay capital gains on a home they sell after the death of their parents. Its simple. Your parents pay 40k for a house in LA in 1968. They die yesterday. You sell the house for 700k after their death. All their gain or profit if you will is forgiven so the heirs don't have to pay capital gains tax when the house is sold. That rule benefits the working and middle class greatly since most people don't pay the inheritance tax anyhow. Without that rule capital gains would be due on the house. Yes yes that only benefits the rich! How ridiculous the NYT has become.
2
@Brad
Why shouldn't the heirs pay tax on those capital gains from inherited assets?
What is the social or fiscal benefit of the step-up basis?
4
Louise Linton, Mnuchin's wife, still thinks it funny that the little people use money with those little 'Ones' on them.
8
Wow, it's gotta be great to be rich in America.
I mean, when the government sets all the rules to favour those who have a lot of money so that they can keep even more money even when the rules were adjusted to take away deductions from working class and poor Americans...well, you gotta wonder what the heck is going on.
This is what Donald really means by "Make America Great Again" - for him and his rich pals.
The stripping away of all remaining vestiges of sanity in America is giving pause for people who might consider visiting there.
With guns everywhere and daily mass shootings, ICE setting up random roadblocks to question anyone who in not white about where they come from, a VERY poorly crafted trade policy that is alienating all of Americas friends; not to mention a foreign policy that panders to its former enemies (Russia, DPRK, et al)...well, you can see why people might want to give America a miss this year when it comes to looking for a good place to go when winter hits.
Trump plans to suck the nation dry of money before he leaves. He will put as many policies into place that he can to allow his rich pals to get richer. Even after he leaves the White House his buddy Vladimir Putin will do a deal with him to build a hotel in Moscow and maybe Kim will let him build a hotel on the beach close to where he builds nuclear weapons and missiles - who knows.
9
This isn't just a massive facepalm, this is shoot yourself in the head ridiculousness. What is it with these greed monsters, anyway? They just want to hasten to downfall of any socioeconomic classes down to us vs. them? The gall is burning in my throat.
3
Betsy DeVos needs another yacht.
10
@LIChef: Another yacht? Hey, I look at that woman's face, and I think that she needs A BRAIN. The grinning vapidity of her face leads me to believe that there is nothing but AIR in between her ears. Most of the stuff she comes up with is outrageously idiotic. And this is the MORON in charge of education!
1
To quote Barack Obama "Come on, man!"
5
“What does he have—a magic lamp? Those jobs aren’t coming back.” Obama was just too cool to be President.
Steven Mnuchin, the Treasury secretary, a truly disgusting human being.
11
The Master of the Swamp.Take care of your own.
5
This is career suicide isn’t it??
3
Poor Bernie Sander's head must be exploding.
3
Don’t looters get shot after a disaster?
5
GOP/Trump is pure greed and corruption. Vote out GOP to save America. Ray Sipe
5
It was the wealth inequality and the ignorance of Tsar Nicklaus that sowed the seeds for the Russian revolution.
But then Trump wouldn't know that he bearly knows US history.
Up the workers!
3
@Braddock, Putin and Trump would both like to be Tsars to whom all others are vassals.
3
Take a ride down the boulevard where Trump's property Mar-a-largo sits and you will see the most disgusting display of over the top mansons each with a few mercedes, each with their iron gates, each a display of opulent wealth beyond the pale. When is enough enough, how rich must one be before it's enough. Trump already gave them everything and now this? Clearly this is an attempt to make the wealthy beholding to Trump going into the next election.
6
@Bill, Congresscritters are beholden only to registered voters in their districts and outsiders who give them money.
so now this merry band of lying, cheating thieves are COLLUDING to bankrupt the country.
and yet - the U.S CONGRESS remains firmly seated on their hands, just waiting for the offer of a $2million/year no show job.
this administration must end now.
5
This has to be one of the most ironic proposals out there, and one that Trump Nation won't see the irony. Working class wages, and wages for most of the US, if you index wages against inflation show that most wages have stagnated or actually declined in the face of inflation (in other words, if someone was making 30k 30 years ago, and is making let's say 35k today, in real dollars their salary will be less than 30k in terms of what it can buy).
In effect, what the GOP is doing is giving the well off 'investor insurance' against inflation while watching most working people's wages stagnate against inflation (and the trend continues, current wage growth is like 2.5%, inflation is running at 3%, so working people on average are losing .5% a year on their income).
4
People: any of you tried to save for a house down payment? You squirrel away money, invest it in sensible mutual funds, and maybe 10 years later you think you’ve got enough. Except that you don’t after paying taxes on gains that are less than the rise in the price of the house. That’s the concept here. I’m guessing that most homeowners commenting here must have gotten their down payment as a gift from mommy and daddy. You know who you are. So stop it with the 1% talk!
2
Wake up my fellow Americans. The Republicans are going after what little remains in your skinny wallet. How do you think that these continued give-aways to the uber rich are going to be paid for? They're coming after our social security and medicare/medicaid. Don't believe me now? Just watch....and you ain't gonna like it....but it will be too late.
4
This is a crisis. With the immigration crackdown estate staff costs are going through the roof. Who will maintain the polo fields?
3
Can't we just get this over with. Jared and Ivanka have been designated successors to the court. We will just have to wait until they build Versailles in America so that we can grab our pikes and our tiki torches and engage the revolution.
2
Arya Stark needs to update her list
"America" has become a cruel joke.
4
“We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both.”
Justice Louis D. Brandeis
4
@Dave
“We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both.”
- Justice Louis D. Brandeis
And that's exactly why the Rich are anti-democratic.
2
Hmmm. There are very few posts here supporting this monstrous plundring and pillaging. Where oh where did all the Trumpers go? Surely they won't abandon the swamp creatures in their hour of need. Or could it be, just possibly, that the nickel finally dropped?
4
@kevo They do that. Sometimes in this community, those who wrap themselves in the patriotic flag of conservative punditry try to put on an act of "Now this latest Trump thing is unsupportable," but most if not all of their other comments negate any cloak of logical analysis they try to conjure up. In a case like this, the most frequent supporters usually hide until the next news cycle.
1
@kevo
The vast majority of Trump supporters do not read the NYT.
@L. Beaulieu
While that may be true, there are a lot of pro-Trump comments here when the subject matter is pre-commented by the FoxNews Axis so it is easy to regurgitate. There also have been a fair number of comments on some issues with suspiciously eastern european grammaticaly faultings, if you get my drift.
Of course they are. After all, it has been less than a year since the last imbalanced tax break they got.
First the rich get a permanent tax break (with generous loopholes). Now we need to give them a break on the extra money they have which they can use to make more money.
Meanwhile, the median and lower income tax breaks will phase out while incomes remain mostly stagnant and cost of living increases. Wow, what a government, no?
$12 billion is going to pay farmers for the money lost (so far) with Trump's ego driven tariff wars (to ensure their votes in November).
$52 million spent on his golfing (over $1.2M just in Scotland, much of which was paid to his company for accommodations).
The N Korean summit where nothing was really accomplished cost over $150 million ($12K alone for the carpet Kim and Trump shook hands on). Who knows how much being spent on our southern border immigration fiasco.
There are multiple legal cases against the Pres (including Mueller's investigation into Russian collusion and obstruction of justice) for which taxpayer money pays his lawyers.
So who where is the money coming for all this?
Look in the mirror America. It is the majority of US citizens who are laying the golden egg. If we are not careful, the goose will get killed when we can't even afford to shop at Walmart.
Be careful how you vote.
1
Trump said: "So, somebody said, 'Why did you appoint a rich person to be in charge of the economy?' … (because) They don't want the money. ... in those particular positions, *I just don't want a poor person.*"
Yes, they DO want the money. These immoral scoundrels are living out a greedy fever dream where they can create the nation that will benefit them personally.
PLEASE get everyone you know to register and VOTE these people out of office! Every single person you know!
4
Note to working class Americans: Don't worry. This proposal is designed for dollars to trickle-down to the non-wealthy. It's a fact. Many people have said this very same thing especially the billionaires on Wall Street. Believe me.
2
America, the land where greed never sleeps.
4
It certainly pays to be rich.
People are wondering how the rich can be so greedy. If you have a Billion, for example, you could spend $1000 every single day - for 2,700 years!
A $76,428 (market price) BMW 740i x-drive requires payments of about $1529/month so you could buy 20 BMWs per month - for 2,700 years and you'd end up with 648,000 BMW 7401 x-drives.
The rich think and act differently than a normal person. It's not so much about greed as about power. Money buys/is power.
But money can be taken away, like in the French Revolution.
When the rich get richer, they're not just getting richer, they're also making You much poorer.
When the People are poor, they lack the power to take their money back. The laws are made to secure the Rich Man's property.
The rich now rule as masters over the poor. They send the poor people to war to be killed, which also helps their rich friends on the other side by killing their poor people.
Not long ago slavery was the law of the land and people could be used at will, or killed. The rich have not changed, they don't care if you live or die.
So as the rich get richer, it's not just greed - they concurrently bleed you dry so you lose the power and once past the tipping point, they cannot be stopped. They now control the entire federal government and most of the state levers of power.
With this unilateral tax cut for the rich - Pure Theft - they're saying it's game over.
4
@Fourteen
Your numbers are hilariously wrong.
If you have a billion dollars invested in risk free treasuries yielding just 3% annually you earn $80,000 before taxes every single day.
$1,000 a day isn't even a rounding error to these people.
@AGuyInBrooklyn
Yes, that's right! But risk-free bonds are not risk free, especially over 2,700 years. So to be conservative, $1000/day should be enough for anyone.
As always, an extremely pejoratively worded headline. Add “wealthy” to the long growing list of slurs the Times has its disposal to hurl at Trump at its whim. I own a home and have money in mutual funds and I also teach public school. It sounds like this rule change would help me as well as all those living in the Hamptons unlike what the headline is implying.
1
@John Doe
I understand you would like a lower rate of tax. You need to understand there are many ways of giving that to you. Some are more likely to help disproportionately the very wealthy than others. Given the gigantic deficits the country currently runs and the extremely low rate of tax the wealthiest enjoy, the last thing we need to do is reduce the taxes of the wealthiest disproportionately.
As the article correctly states, “Capital gains taxes are overwhelmingly paid by high earners.” Hence the entirely accurate title, notwithstanding that some not-so-high earners like yourself, apparently, pay capital gains tax as well.
If, as you suggest, the majority of your income comes from your salary as a public school teacher, whatever benefit you receive from the capital gains inflation indexing proposal is minuscule compared to the benefits a billionaire will receive, not just absolutely, but relatively, as a proportion of their entire income.
How about we lower the lowest brackets, including for capital gains? That will target relief to you, without increasing the deficit unnecessarily.
It’s critical not to be duped by the gift of a lollipop, while the more fortunate receive caviar, filet mignon and champagne, and the entire country crumbles around us.
@John Doe
Why do you want or need a tax cut today?
1
My oh my, what to give the person who has everything?
6
This is nothing more than a smash-and-grab operation. In other words, grab while the grabbin' is good. How do these lunatics plan to pay for this and the $1.5 TRILLION hole they just blew in the economy? Prepare for a deep, destructive recession, because it's coming.
3
When Barack Obama lost Congress but decided he would still "get stuff done" by using his "pen and phone" to sign and issue constitutionally-suspect executive orders on issues like same sex marriage, immigration, and fossil fuels the left - and NY Times - celebrated. Others of us warned that there may not always be a president in the White House whom you like and trust - so shatter separation-of-powers precedents at your own peril. See?
2
This article seems to ignore what appears to be under consideration. It claims that it is a cut for the uber rich (something the NYTimes says anytime taxes are not raised on the top half of the country). However, capital gains is not something that the rich just get hit with. Capital gains on an investment hits the retirees more than anyone! Obama played the game talking about Warren Buffet and his secretary by pretending she paid more taxes than he. NOT true. Her tax rate was higher as his investments incurred a capital gains tax of 15% while she paid pay role taxes of 20%. He paid much more than she, obviously. But millions of retirees are trying to live off their investments (stock, house sold, etc.) in addition to social security (which the government is supposedly paying out at the level of inflation now). At least those that worked hard, sacrificed, and saved. I guess anyone that has money from a life of saving is a target to the NYTimes and the progressive communist movement sweeping the country. Also, the inflation rate was changed in the early nineties to exclude food, energy, and other essential commodities. Right now the Fed claims 2%, but it's over 20%! Anyone by food lately? Don't buy into the NYTimes misleading take!
1
Now I get it.
Trump bumps into us.
While Steven Mnuchin picks our pockets.
8
This unilateral tax cut is for themselves, Trump, Mnuchin, Ross and all the millionaires in this oligarch bloated administration. Vote.
.
3
Another steaming gift to the already stinking rich served up by Trump's his minion Steven Snidely Whiplash Mnuchin. Why do the working classes vote for these cartoon villains and against their own economic interests? Does a delusion known as the American dream contribute? Perhaps the sentiment, quote or paraphrase attributed to John Steinbeck best sums it up: "Socialism never took root in America because the poor see themselves not as an exploited proletariat, but as temporarily embarrassed millionaires."
6
@Mario, anyone could win Powerball.
I am sick of this greed and graft.
5
At some point even the "Deplorables" are going to realize they have been had. Trump and his crowd worship at one altar and that is the altar of greed.
3
Wow. Just wow. Turkey's voting for Christmas.
2
Told you. Trump will give the working class nothing but higher taxes and an empty treasury. Fools never listen.
3
"Everybody that the boat is leaking,
Everybody knows that the captain lied..."
Leonard Cohen
6
These people fell no shame, and that is the problem. Do they ever look in the mirror and realize how much people loathe them?
3
@JS27
"These people fell no shame, and that is the problem. Do they ever look in the mirror and realize how much people loathe them?"
All they do is look in the mirror, and they smile.
2
This clown should NOT give the wealthy taxpayer another tax cut since we already had one let the rich py a higher tax and lets vote every republican OUT in the mid terms
4
Greed has wanton ignorance for an ally in our once admired nation. It breaks my heart to see my fellow Americans turn lapdogs before such a man as our President.
Washington? Lincoln? Wilson? The Roosevelts?
Not in a million years. Yet, we stoop before a liar and bully, rapist and cheat.
This, too, shall pass...but what smear will be left behind on our nation? And for how many generations?
1
Nearly 2000 idiotic responses, not one recognizing that 70.88% of all income taxes are paid by the top 10% according to the tax foundation.
You simply can nt cut taxes on people that do not pay.
3
Your numbers are incorrect. The top 10% pay roughly half of federal, state and local income taxes. By overall tax burden, the top 10% pay far less than half. Obviously you can reduce the tax burden on the other 90%.
But, this has nothing to do with the top 10%. This is for the top 1%, who hold nearly 90% of taxable investment gains.
3
@Professor And they OWN 77% of the wealth in the country. Sounds like a pretty good deal to
Stuff like this is what made guillotines such a fashionable accessory among the A-list French in 1794....
3
@Nobody
"Stuff like this is what made guillotines such a fashionable accessory among the A-list French in 1794...."
Yes, but the Rich learned from that, so they first militarized their police and are now protected by a police-surveillance state.
Makes you want to support the 2nd Amendment.
2
Will this FINALLY give billionaires enough money so some can "trickle down" to Main Street? if not, maybe they should just completely abolish billionaires' taxes.
Although I detest the Trump administration, I must agree that indexing long-term capital gains is the right thing to do. Presently, if a gain over a decade is not so large, it could actually be a loss in real dollars, yet a tax is due on it. However, a government loss in revenue must be must be made up in an increase elsewhere. Indexed capital gains should be taxed as the same rate as ordinary income, not at 20%.
Want to get re-elected? Do something for the middle class, like restoring the SALT deduction which would benefit millions of Americans. There are more of us than there are of them.
1
After reading a bunch of comments we have to remember that one of Trumps earliest close advisor, Steve Bannon, is in favor of destroying the Union. Yes, we must remember that the US is a Union. That Trump now appears to be on that path should come as no surprise.
The big question is will the Trumpettes figure this out and when? Until the election this fall we won't know the answer.
Till then we must muddle along with a large % of the population worried about such things as how and where do I get money to buy two tires for the car needed to get to work. While the upper 1 or .1 % of the population buy tires for jet planes.
I believe that at birth each citizen is given a corporation so that they can participate in the benefits of INC.
1
"Trump Treasury Chief Considers $100 Billion Tax Cut for Wealthy"
It isn't enough greed that the rich and big business has already received tax cuts worth over $1.5 Trillion dollars from last years tax cut bill. Now Trump and Mnuchin are cooking up a new wrinkle just for the rich. This is just the rich taking care of the rich while they pad their own pockets.
And what of the middle class and poor? They get to try and pay for the tax cuts for the rich. Then, the deficits that are and will be created will have to be paid by those two groups and their children and grandchildren.
I'm seeing several responses supporting the Trump Administration's move to modify the capital gains tax, because the gov't supposedly "creates" the economy. I'm curious if these people support welfare too? Because it's the gov't that creates the economy and if people can't find a job that pays a living wage, isn't that also the fault of the govt?
Oh, what's that? You don't support welfare or food stamps, because "those people" make "bad choices"? You, on the other hand, are the people the govt SHOULD support, because picking a stock that does poorly is THEIR fault, not YOURS? SMH.
2
I guess trump wants to cash out what he made on insider trading in the White House before the real law and order party arrives next year. He, along with his staff and cabinet, should be audited after this.
2
This is why we Need to get back (Democrat) control of the Government. $100 Billion more in the pocket of the wealthy means $100 Billion less for Medicaid, and Infrastructure. And other government programs.
6
Expect more of the same if Republicans maintain control. The long term plan, which really isn't getting spelled out for voters the way it should be: ever-larger tax kickbacks to the richest, while gradually shifting more of the tax burden to the middle and working class. That's the way this works, folks.
When your opponent decides to walk in the path of a speeding train, you get out of the way.
If Democrats are interested in recapturing the Congress in November and the White House in 2020 they should allow the Republican White House through the Treasury Department to cut the throats of Republicans running for office by unilaterally indexing capital gains for inflation. The maneuver, a longtime wish of conservatives, will enhance the wealth of wealthy individuals. It will also reinforce the weaknesses of the Trump tax bill by increasing the federal deficit, by depriving our government of much needed tax revenue for programs and initiatives designed to assist the majority of Americans and by failing to increase the stagnant wages earned by working Americans in the middle and lower classes, an albatross Democratic candidates for federal and state offices across the country are successfully hanging around the necks of their Republican opponents.
1
Rob the poor and reward the rich !
Wonderful. Isn't that what Mr Trump has been doing all his life ?
Robbing investors, students, charities and rewarding himself ?
People who voted for him , voted for corruption and thievery because his past was very well known and documented from bankruptcies to Trump university scam to outright thievery from charity.
1
The most absurd thing on this unbelievable tax benefits to the wealthy is that people are defenseless. Make sure you vote in 2018 election for a real good congressman and/or senator. We need them now.
9
We get the government we deserve. Was there any other way this was going to go down?
Wonder if these were the marching orders from the Koch's at the recent "lets round up the millionaire money" retreat - kind of the initiation fee or price of admission for this round of elections, to keep some of the money flowing back to the R candidates.
1
Mnuchin seems very willing to advance our Plutocracy; why not, as he like others in this administration believe they are owed these tax breaks, and can justify their ill-gained wealth by any measure. Steve Mnuchin is a great architect for these policies. He practiced legal stealing while being the Foreclosure King, and should be indicted for criminal acts committed at OneWest, where he blundered and filched money, then relied upon the FDIC, or American taxpayer for a bailout. This man is in control of our monetary policies?
6
It makes complete sense to tax your real return on investment. If it took 25 years to double the value of an investment, you really made no money after inflation. But if it doubled in 3 years, you made a killing. So, let them do this -- and eliminate the capital gains tax rates. Treat it as ordinary income. And by the way, while you're at it, treat interest earned on CDs and bank accounts the same way -- only tax the yield that is in excess of inflation. This will help the smaller guy.
Let's just start sending our tax $$ straight to Trump Tower for distribution.
3
Typical biased, loaded language laden, editorial presented as news Times piece.
The proposal is perfectly reasonable and long overdue. Capital gains are eroded by inflation. They should be taxed accordingly. End of story.
Many middle class individuals own mutual funds. I do.
Saving and investment should be encouraged.
Why are liberals so unable to grasp the concept that striving for self sufficiency is a good thing?
2
@Daphne Self-sufficiency is a good thing. And so is caring for the less wealthy in a society whose social structures have perpetuated structural equality.
As a person of apparent means happy to receive another tax cut, I challenge you to discuss the similar largess that those in the middle- or lower- classes are enjoying thanks to this 'Administration.'
1
Well if they can afford that much of a tax cut on top of the $1.5T they gave away a few months ago why can't they shorten it by $25B and use that "extra" money for the wall El Trumpo wants?
2
There are surprises...then there are surprises, this is neither. I do sincerely hope this blatant money-grab for folks that hardly need it goes through without a hitch. It’ll make it so very much easier for Democrats to campaign against in the fall - as if there wasn’t plenty already. Republicans cannot govern. They see the coffers of the United States treasury as but a piggy bank to be broke over the backs of the bottom 99%. Such hypocrites this modern variant of the Republican Party are. When a Democrat is running a responsible government with a focus on folks who’ve largely been ignored, the whole time Republicans are dragging their feet feigning “tax and spend” liberals with no basis of truth. As for the national debt they seemingly cared so much about they spawned the Tea Party to confront phantom runaway, deficit spending, apparently they’ve had a change of heart - so long as they get a tax cut.
2
"Nearly two thirds of the benefits would to the super wealthy, the .01 percent"
Lets look at the bright side. Across the nation, shopping malls & retail centers could add a brand new enterprise to the benefit of consumers everywhere - Golden Toilets Are Us
2
The right-wing has been slashing taxes on the rich for well-over half-a-century, and the Left still hasn't come up with a substantive, coherent critique. It's really pathetic. We're well on our way to serfdom.
1
This is beyond obscene- when does it stop?!
5
One word to describe the appropriate gift to people who have too much: More.
5
Kleptomania is in full flood. The actions of this syndicate of amoral swindlers and self-serving mobsters at 1600 Pennsylvania Avenue are beyond the pale.
If the voters tolerate this, if there is no "blue wave" housecleaning in November, then the America we hoped to see, the just and egalitarian society we claimed to desire, is gone. Probably forever.
2
Remember the refrain "Drain the swamp?" That and the "Trickle down theory" have fooled so many. The average working person gets nickels and dimes and the rich get Mercedes. Hopefully some of the smarter of the Trump supporters might finally get it that they put a charlatan in the Oval Office.
6
Didn't someone somewhere say "Let them eat cake" and didn't that turn out badly for that person?
With income inequality soaring, the only people who will buy this bill of goods are the Trumpistas. They will believe anything is good as long as Trump tells them so.
Eventually, this is going to get very very very very ugly.
Simply outrageous. There is no end to this tunnel is there?
What planet do these money-groveling Republicans live on?! Clearly, they are trying to do this prior to the elections because they know that they will suffer a humiliating defeat. The voting public will give them what they so richly deserve: two black eyes and a few missing teeth...metaphorically speaking of course.
Do they have any conscience or humanity at all?
3
Can we all now acknowledge that the presidency is not an entry level job?
President Obama summed Trump up completely during the 2016 campaign. Too bad not enough of Obama's voting coalition did not heed the warning. I quote, "Donald Trump spent 70 years of his life only caring about himself. Now all of a sudden he says he's going to be YOUR champion? Come on man!"
Here are the results of not voting, voting third party or actually voting for Donald Trump because, you know, "Her e-mails".
The only thing Donald Trump has done so far, is pass massive tax cuts that benefit himself, his kids inheritance, his wealthy friends and Republican donors. He gets to spend every weekend he can at his residence in Bedminster, NJ & Mar a Lago, FL to the tune of 3 million a weekend in Secret Service protection funded by OUR tax dollars. He also gets to have his name in the history books, & tax payer funded Secret Service protection to keep angry/duped MAGA voters away from him and his family for the rest of his life.
For their vote, Trump's supporters get: No promised "something awesome" healthcare plan. No promised tax relief. No promised coal and steel jobs. No penalties for companies that leave (Carrier Air Conditioner, Harley Davidson, etc). No promised federal money for opioid addiction treatment. No promised infrastructure projects for those who need work. But they do get to keep their MAGA hats...made in China. Suckers.
12
@sonyalg, Obama’s cynical deal with Hillary and his subsequent acquiescence to her pitiful performance as Secretary of State did more to help Trump get elected than almost anything else, so let’s not cast him as some sort of prescient authority. He knew better than to back Hillary and did it anyway. We’re paying for that now.
We fool ourselves into thinking that all the swell stuff we have is because of capitalism—and then it takes off its clothes and we get a peek at naked capitalism, and our stomachs churn. But don't look away: this is it, folks, always has been.
The know the wheels are about to come off, and they want to grab as much grift as they can before that happens.
1
Well, I guess the super rich are hurting and need a bit of help. Why should they be denied? The republican base will gladly empty their pockets to help the rich in need.
So charitable.
Bigly.
This doesn't go far enough! Lets make so only people who didn't vote for trump pay tax. just file 1040 EX45 One line: did you vote for trump: Y or N.
Otherwise you pay.
1
Consider this a Done Deal! Wow! Are the farmers of America who love Trump so much Listening?
1
100 billion here, 1.5 trillion there. Ah well, rip off our children and grandchildren and saddle them with cripppling debt. Don't worry, China will bail us out in ten years.
This is silly. The money you are paying the capital gains with has already grown by inflation. You are paying in "today's" dollars which are worth more than "yesterday's" dollars. So, you are actually paying less capital gain than it appears.
But...I though the right-wing hates redistribution of wealth!
Trump will lose no votes due to this abomination. The uninformed will simply not make the connection to their social services. And he will distract them with, “build the wall.”
He seems to be begging Republicans to support impeaching him. Maybe they would if Democrats showed an ounce of backbone on the issue.
1
Lets just call this GOP scam what it is, "trickle up economics".
I have been for more than 35 years what is now termed a "Registered Tax Preparer" and for part of that time an Enrolled Agent with respect to the Internal Revenue Service as both terms are set forth in its Circular 230. Depending on precisely how "capital gains" are defined, and there are many reasonable definitions, the only reason the somewhat mythical 0.1% would benefit the most would, presumably, be owing to their preponderance in the ownership of "capital assets." However, such a focus is both something of a myth and rather a conundrum.
On the contrary, if one includes only residential real estate owned and occupied by its owners since, say, before the beginning of the current century and factors in the decline of the dollar in real "value" in just the last eighteen years, the amount of "locked in" capital gain is impressive. How much of that "appreciation" is a matter of speculative thinking and how much might be released for less idle investment were the Internal Revenue Code revised to redefine the taxation of "long-term capital gains" is part of that speculative thinking. Nonetheless, it is a matter subject to rigorous analysis and tentative projections of reasonable economic results. The matter bears thought, not sloganizing and cheap political condemnation..
1
How much of the gain from the sale of a personal residence is taxable? Isn't the threshold $1m before any tax is assessed?
The actions by Trump in priming the pump by unleashing the dynamism of American free enterprise through deregulation and tax cuts has already shown beneficial through 4.1% 2nd quarter growth in the economy. 401(k) contributions are indexed for inflation. Why shouldn't the cost basis? Increased liquidity by the sale of assets will help grow the economy and we are seeing wages raise through the tight employment market.
1
In what universe do you live? I live in the real world where the people have no disposable income let alone capital gains.
1
The only solution to Republican Greed comes on November 6th at the polls when America votes for every single Democratic candidate. ENOUGH with tax cuts that shift the tax burden onto the middle class and working poor. Make the Republicans pay for their unmitigated greed - VOTE them out of Congress!
6
Looks like Trump is getting ducks in a row before blue wave in Nov and guess he is not going to run in 2020.
2
If instead of cutting the super-rich taxes directly, Trump heavily taxed his semi-illiterate fanatics - to which they would cheerfully agree - and then used that money to give tax rebates to the super-rich, Trump would be able to further enrich the oligarchy at the expense of his ignorant followers - without worsening the deficit. A winning strategy for the GOP.
2
After last year's tax giveaway, how can Trump, Mnuchin et al make a hypocritical move like this and then try to make another hollow appeal that they're looking out for the working class?
Has the GOP leadership lost its mind as well as its conscience?
6
In the real world, the impact of inflation is already baked into all investment decisions. Those who know how the system works know that they look for real gain over time and adjust their decisions to fit. To argue that inflation is "unfair" to high income investors is a sham. And, a shame!
1
Well for all of the supporters of King Trump if this doesn't wake you up nothing will. We now have to fight the Revolutionary war all over again.
Greed is the first and last name of this administration . America will be home for the rich and entitled not for anyone else.
Register to vote and get them out of office otherwise we the common folks are destroyed. Its already begun, children in cages still unaccounted for minorities being shot everyday. We ae in a sorry state but voting can change the state of affairs.
3
It's simple: their greed is insatiable.
4
Sounds like a corruptive language by the government ? Are we in a Banana Republic ?
1
Good lord. Meanwhile, the planet is burning up and kids are being shot in their classrooms (oh right, we're on summer break so it hasn't happened for a while). But those things aren't really that important are they? Building ridiculous walls and giving high earners tax cuts are absolutely necessary for this country right now. (...Sigh...) Why would anyone expect a man who lives a .01% lifestyle and has had everything handed to him on a silver plate to be a President for the every man?
6
Why don't we just skip elections (avoid all the hacking) and just declare trump the ruler of the universe? The Koch brothers must be delighted.
3
Old southern saying, "Republicans think the poor got too much money and the rich ain't got enough!"
My, how things have changed in the south.
3
Let me add an original thought to this. GREED IS GOOD! What? That's a quote, from a Hollywood movie of thirty years ago! But, aren't those movies fantasies, that no one takes seriously?! Yea! Yea! Yea!
2
Betsy needs another yacht. She makes Leona Helmsley appear humble.
5
All this is a build up to cutting entitlements cuz, gee, we can’t afford Social Security.
3
My biggest surprise is that 'we the American people' have yet to recognize that Emperor Trump and his massively and illegally looting regime are increasingly (and deceitfully) turning our formerly promising, and sometimes progressing, democracy into acting exactly like an Empire with respect to both shamefully extracting all the wealth it can from average Americans domestically, and bullying functional democracies abroad into increased funding militarist (and dangerously aggressive) behavior abroad against any countries that may even attempt to avoid being bullied by Emperor Trump into his dreams of global empire.
Ironically, such tendencies by a leader ('Fuhrer' in German) were criticized by the late great Jewish intellectual, Hannah Arendt, warning to her own people:
"Empire abroad entails tyranny at home"
One might easily and justifiably argue that 'looting' and other predations at home are symptoms and warning of gathering "tyranny".
3
@Alan MacDonald
While I'm tempted to use that famous newspaper story-line, "Yes, Virginia, there is a Santa Claus" --- I will only say, "Yes, these are the "Times" in which "the times they are a changin'" --- since our "Times" had the courage and vision to allow this 'news that's fit to print' from my submission
1
Ironic that most of the 95% of Republicans who support the president will not benefit from this thievery.
6
No one loves the midle class more than Donald Trump. Remember? He said that out loud at one of Opposite Land's many Trump rallies.
Or did he mean to say "No one loves the rich more than Donald Trump"?
2
Yet another tax break for gazillionaires???????? All of this winning is going to be the death of us all. Unbelievable.
3
If the Executive Branch can do just about anything it wants through an Executive Order, why have a Congress? The House and Senate cost taxpayers a tidy little sum to have them do, effectively, nothing, day in and day out. This has to be the most overpaid, underworked, group of mostly white males in the workforce. The ignorance that runs rampant throughout the electorate will continue until Democrats can find someone who can speak with a clear, effective, and galvanizing voice. Until then, ignorance is bliss, and our country will be run by the incompetent.
1
Why can’t those that make no money get a tax cut. It’s only fair. Maxine Watters
I wonder how they are going to pay for The Wall now if the weallthiest have even more ways to dodge the tax collector?
My suggestions: pass the hat at Trump rallies and NRA conventions. You want The Wall, you pay for it.
10
Wonder how a cut like that would affect Mnuchin's taxes. And Kudlow. And Jared and Ivanka. And DeVos. And the rest of the uber-greedy ruling class.
2
In the words of that great sage John McEnroe "YOU CANNOT BE SERIOUS!"
Great nations are built on a wealthy and growing middle class. Revolutions are built on gross inequality and blatant rent-seeking.
Perhaps the preppers are on to something after all.
1
Oh, what's another hundred million dollars more or less in deficit, when it could mean millions in each and every pocket of a major Trump campaign donor? This is a no-brainer for this administration.
1
I'm middle class; my taxes are going up. Someone has to pay for his weekly "vacations" from which he profits off of tax-payers by paying his own properties.
2
This is a deliberate plan to bankrupt the government so they can cut out social security, Medicare, other social support nets. They will continue to live in their gold palaces.
3
Great! So this means that Wal-Mart and Koch Industries will consider raising employee wages and providing health insurance for all employees, right? Right?
3
Surely inflation is already accounted for in the difference between the tax on capital gains and on the income you actually work for!?
1
funny how the minimum wage and gas taxes are not indexed to inflation and the GOP has no interest in doing so yet capital gains should be? The concept is generally good to index, but it's got to be across the board. Obviously, we know who they care about and how they don't.
4
@Dan G
Income taxes are indexed to inflation.
What about correcting minimum wages each year for inflation, or the insured value for a FDIC bank account? Makes good sense to me. The little guys count too.
3
Do we then retroactively re-calculate transfer taxes on certain classes of assets as well? I mean, if you get to keep all of the inflation adjusted dollars from a capital gain then at the very least you should pay the inflation adjusted cost of the initial outlay.
3
I guess I'm not really clear on why this is being treated like it only applies to the rich. I'm far from wealthy and I still pay capital gains taxes on the sale of stocks.
The vast majority of capital gains taxes are paid by the rich because they're the ones selling the most assets. Percentage-wise, this would be the same benefit to someone selling $10 of stock and $10,000.
4
@Chris percentages: 86% of the benefit goes to .01% of the population. i suppose that numbers don't matter to trump cultists, though, since they can be convinced that losing the popular vote by 3 million equals a mandate and the most popular "president" in history.
10
Your proving yourself wrong here. You have $10 and you stand to make $1, you have a billion and you stand to gain far more. Therefore this disproportionately only does good for the uber rich only, not the people with $10. It’s not equality. It does t trickle down.
1
@Chris
This tax is regressive because most people make money off their labor and not their investments. This is a tax break for investors not laborers. The rich investors would therefore get a proportional advantage.
1
If Mnuchin rigs the system even further for the .1% by somehow finagling depreciation deduction for capital gains (none depreciable assets), then basically that would bring all those capital gains assets to current value.....so that means capital gains income should be taxed as ordinary income!
4
The article describes the tax cut as one "for the rich". In reality it is for everyone paying capital gains.
3
@John
The rich gain more income proportionally from capital gains than do the working class, thus, the regressiveness of this proposal.
1
@John It is since almost 67% of the benefits effect the 315 individuals who are the 0.1%. Or the 97% that effects only the top 10%. So you how much tax do you anticipate savins?
1
@Mike
If you look at as absolute dollars then the benefit to the rich is higher. If you look at things on a percent basis, the impact is meaningful to the average person.
If anyone holds an investment for 20 years where inflation is 3.6 % a doubling in price would mean it retained its value.
I think the best approach is to increase the capital gains rate while adding compensation for inflation so that the end result in revenue neutral.
We have had low inflation in recent decades but I can remember double digit inflation.
"'I think we ought to look at not penalizing Americans for inflation,' said Representative Kevin Brady of Texas, the Republican chairman of the Ways and Means Committee..." What he actually means is "I think we ought to look at not penalizing *rich* Americans for inflation." Being rich is already hard enough, obviously.
9
"Corporate tax receipts have plunged while the deficit has soared" doesn't this say it all. Trump and his filthy rich, stressing "filthy" are attempting to make our government a model of the Russian oligarchy. Over the past 18 months, Trump has helped only one middle American, the lady who he pardoned at Kim Kardashian's request. His tax plan is a boondoggle, that the GOP won't even mention in their campaigns, people are either losing or facing enormous rates for their health insurance and we now have state sponsored child abuse, given his hate filled attitude towards immigration. These are only a few of the negative effects brought about by Donald Trump.
Because he is not held accountable for these grave mistakes, he now wants to give another tax break to the very top income Americans. He has boasted that he saved his fortune by using the bankruptcy laws, now his Treasury will attempt to bend the law to accommodate this despicable plan. Not one life will be more secure, not one mouth will be fed, not one family will be made whole, what a travesty.
5
I doubt that most of Trump’s conservative middle-and low-income supporters will be bothered by his most recent and blatant welfare for the rich scheme.
After all, they see themselves in this reality star, and think with the mindset that “What makes Trump great again, makes me great again.”
There is a dangerous blurring of boundaries and blind acceptance of Trump’s behaviors; so much so, in fact, that Trump once said he could "stand in the middle of Fifth Avenue and shoot somebody" and his voters would not turn against him.
,
Expect even more extreme moves from Trump since he knows that his supporters. living vicariously through him, are a dog-whistle away, and will allow him to do just about anything he pleases.
1
Destroy your grandchildren's future: Poison their world, take away their quality of life, take away their knowledge and culture, and make some money for yourselves right now. Great planning!
Here's a thought for the Congress to consider: Hold a join meeting of the two houses, place two, unlabeled glasses of water on each desk -- one pure, the other with one "drop" of dioxin -- and then ask each member to drink from one glass of their own choosing.
Who's first?
3
So to all the trump supporters - stop for a minute - sip your coffee and then wake up! Regardless of the ability of the Treasury to do this, is the thinking that they want to. Many love to call liberals socialists (even though they use the term incorrectly) - but what they are missing is that the current admin as well as movement conservatives like Norquist are enacting socialism for the wealthy. Time and time again, these attempts at trickle-down (which is exactly what they are prescribing) have been shown to not work. The wealthy protect their wealth and have no plan to share!
13
What a deliberately headline.
The change would reduce the tax for anyone selling a house.
News: most people selling houses are not millionaires.
Keep this up and you'll have Trump Two.
3
@acule Absolutely not true! Sales of primary residences are already largely excluded from capital gains tax.
Please get your facts straight!
4
News. People selling personal residences almost never pay taxes on the gain as the exemption is for a profit of 250K single and 500K married. Your comment ignores the facts like most who try to defend this indefensible Administration.
3
Capital gains from sales of homes are exempted, up to $500,000 of capital gain. Only the richest would pay a dime of capital gains on sales of their homes.
1
Are we supposed to believe that because this is coming from Mnuchin, it's got nothing to do with Trump? Why doesn't Trump just come out and say that his family, the zillionaires in his cabinet, his rich friends, and anybody else he chooses don't have to pay any taxes at all? That seems to be what he's working toward. He hasn't adequately explained the first tax cut he gave himself and the rest of the 1%. Now, he's doing it again? And, right before the midterms? Way to help elect more Democrats to Congress, Donny! Thanks!
8
The headline is inflammatory, but it is also untrue. The proposed tax cut is not exclusively for the “Rich” as reported by the New York Times. Tax cuts, including the proposed, benefit the entire population of tax payers. Although it makes for good divisive politics to pit the people who pay no taxes against the people who pay taxes, tax cuts ironically even benefit the people who don’t pay taxes, which is now more than 50% of the U.S. population. But don’t expect to see it explained in the New York Times.
Tax cuts are a proven stimulus to the entire U.S. economy because taxpayers have more of their earnings to spend or invest. This incremental additional spending and investing has a multiplier effect which could be as much as 3 or 4 times the amount of the tax cut. A thriving economy translates directly to lower unemployment, and increased wages and salaries in every tax bracket, including this who pay no taxes. Even the people who choose not to work benefit from tax cuts because the net effect of a stronger economy provides more tax revenue despite the tax cut. The additional income in a thriving economy, while taxed at a lower rates, generates more tax revenue, which is used to provide a plethora of social services to the people who do not contribute to the pool of tax revenue used to pay for these social benefits.
The democrat narrative that tax cuts only benefit the “Rich” is class warfare and hurts the country because it destroys the unity that could benefit everyone.
5
@Jam77 This is hogwash. In fact, tax cuts on the wealthy have been shown to NOT stimulate the economy. This "a rising tide lifts all boats" arguments is a narrative pushed by supply-side economics conservatives. It is nothing more than a self-serving, duplicitous money grab.
Also, your comment that more than 50% of the U.S. population does not pay taxes is absolutely untrue. While many may not pay FEDERAL income tax, they DO pay Social Security, Medicare, state tax, property taxes - and on and on...
More conservative FAKE NEWS!
3
@Marie S
But a rising tide does lift all boats, even the little ones. It was your analogy.
First, lenders are subject to tax on inflation because interest is determined based on the nominal, not the real, rate. So this proposed inflation-adjustment for capital gains would further exaggerate the preference for capital gains over loans.
Second, 'triggering asset sales' is not a policy. How about we give everyone who sells a capital asset a toaster? That's the same logic and policy.
This proposal confirms that Mnuchin, like the rest of the Trump cabinet, is a dumb, ignorant, self-serving guy who plays a smart, knowledgeable, selfless public servant on TV.
Trump supporters have to understand (and we need to convince them if they don't):
1. The Trump's North Korea policy is a potential success story of this administration. A rude bully may be just what the North Korean regime needed. (Who knew?)
2. The reduction in US corporate tax rates is a success story of the administration, although the tax breaks for 'business income' subject to a single layer (rather than the corporate double layer) of tax is simple deception and fraud.
3. Everything else is a current or prospective disaster. For example, turbo-charging the economy by slashing taxes, ballooning the deficit and getting publicly angry with the Fed when it raises rates to curb the inevitable inflation is akin to telling the electorate they'll feel better if, by analogy, they just take some methamphetamine every morning, which works well until it doesn't.
3
The government financing method has become a hpinata that Trump and the republicans have broken. Now they're just scuffling on the ground to see who gets the most candy (tax breaks). Terrible.
3
Wha??...the GOP has long fought against pegging the minimum wage to the rate of inflation. Now the idea is a good thing?
Capital gains already get favorable tax treatment as a means to encourage investment. This is another selfish, greedy, gluttonous, hoggish money grab for the rich to pull out more cash from the US Treasury. Who is going to pay for another enormous increase in public debt that this change would cause?
Lying again about how this action will help the economy is appalling.
4
Trump's end game has begun. It consists of feathering the nest of the rich to ensure himself a safe landing when he resigns. "Money for nothing and chicks for free". By "paying it forward" by robbing the US Treasury he pulls off one final swindle. Then he moves back to NYC, sits at his gold plated desk, and says..."that was fun".
3
Why not take the 100B from the ultra rich and build a really sweet wall, sir? They want it let them build it.
14
Sometimes I wonder if these folks were absent from history class on the days the French Revolution was discussed.
12
Republicans never miss a chance to help the long-suffering, down-trodden rich. Bless their hearts.
10
This is a stunt to make the middle class people who voted Republican and then got fleeced by the last tax cut for the rich, feel better when the Republicans pull back and don’t do it and tell the voters that they care about them.
2
Hmm, who would benefit the most and most immediately? A Real Estate developer with enormous capital gains liabiltiy like say, Trump.
4
When will the average American wake up and realize that we have a corrupt and unethical administration in the White House that will stop at nothing short of making this country a rich theocracy for the top 1%?
Every day as Trump 'pushes the envelope' further, you wonder when his action(s) will be enough to elicit a real response from those in power? Ryan and McConnell- are you both so caught up in the bubble greed to actually not notice the slow destruction of our country's sacred norms and values, as well as our institutions?
What is it going to take, short of a civil war or mass unrest to wake this knuckleheads up by challenging truth to power here?
2
The Foxes stole all the Golden Eggs,
and drank toasts with fine champagne.
Old Goose, they’d starved,
and longed to carve,
they delighted in her pain.
Oh! They danced to her cries of pain.
Old Goose, she died.
Away did Foxes fly
to their Islands in the Sun.
And the sheep they’d fleeced
did cry and bleat.
But there was no place left to run.
They knew not what they’d done.
But the Foxes had their fun
on their Islands in the Sun.
4
Ah yes, as we continue our fast paced trip to the worst of the 19th century: environmental degradation and robber barons. Up next: Work Houses for the poor.
10
That would be very unwise for Republicans to do it to say the least.
Tax cuts for the rich, social service cuts for the poor. The GOP as corrupt Robin Hood.
5
OMG... can you liberals just think for second what you are complaining about? This would be a huge gift to ANYBODY that has a retirement account. ANYBODY who has worked their whole lives and saved for retirement in a 401k or 403 B or IRA will benefit hugely from this. One of the main reasons why people hold onto stock assets forever is because the tax implications are enormous if you cash them out. This means that retirees hold onto huge funds while spending much less on themselves in retirement so that they do not deplete the funds with huge taxable gains. Sure, the poor do not have retirement funds, but this will INCREASE the liquidity of assets across All classes of investment. The value of those assets might actually go down as more people are willing to sell which increases downward pressure on stock prices. It shifts the flow of equity from the pockets of the rich into the economy and will be a huge spur for spending and economic growth. But that is not what the NYT readers want to hear. They prefer the to hear that they are being fleeced by the gov. How many of the readers here even read the article or have a rudimentary understanding of tax and economic policy? This paper has just become a shouting mob that will dismiss ANYTHING suggested by a republican administration.
3
More ignorant nonsense from someone who does not understand the tax system. There exists no capital gain treatment inside retirement accounts. All retirement accounts are funded with pre-tax income and are taxed at ordinary rates upon withdrawal capital gains or not.
3
@Jean claude the damned
Here's the deal, Jean claude. If this administration wanted to help the middle and lower classes, this adjustment to the method of determining the capital gains tax could be structured to benefit ONLY those under a certain income.
The fact is that 86% of the benefits would go to the top 1 percent (94% of the top 10 percent).
You are making a misguided and inaccurate argument. I hope that it's an innocent mistake and not meant to spread more conservative venom.
3
It's OK, this is how the system works. Just look anywhere else in the world. Those in power take the money, our money and all is good. You got a problem with it? speak up and end up in a gulag. Why should the US be any different? We're just catching up to the rest of the world with China and the Russia leading the way.
1
Fits right in. He's doing everything ELSE wrong too.
To the few who will see this comment in the deluge (1987 posted so far): there's what I believe to be a sort of code phrase in the article: "on the sidelines." Pay attention to wherever The Times uses this, and you'll be on your way to a meta-understanding of the news. You read it here first...
Time to look at those tax returns, eh?
4
Adding insult (to our moral sensibilities) after injury (to our Democracy).
2
It’s as if this administration is a social experiment designed to test just how much the wealthy can get away with before their GOP-voting sucker supporters will turn on them.
4
Allowing the government to continue to tax inflation is totally unfair and it must be abolished. This would also provide a strong incentive for government to make sure that inflation is controlled. Inflation hurts everyone, rich and poor.
2
Aside from the main issue, this article includes some examples of a practice which has long annoyed me.
"at Americans for Tax Reform"
"at the liberal Center for American Progress"
"of Americans for Tax Reform"
Did you catch it? There is no political descriptor for conservative organizations but there is for the liberal one. I see this time and time again. Either all should have political descriptors or none should.
2
It will never be enough. Not until the little people are paying 90 percent taxes on their income, have no Social Security, or Medicare, and must pay tolls to drive to their local grocery store. All in the name of tax cuts for the rich.
4
This isn't a bad idea - as long as investments must be held for a year or more to be considered capital gains instead of earned income. Doing this would help retirees, but stop the day traders from pushing companies to make decisions based on stock performance and investors vs. workers and communities. Reading the comments, I do realize that most here are clueless about what a capital gain really is and who benefits.
3
The real negative impact of this policy is not that the wealthy would get a big tax break on capital gains. It's that the wealthy would get a huge opportunity to buy capital at good prices, furthering the concentration of capital in the top ranks and widening inequality in the long-term.
This policy will be a significant incentive for lower/middle class people to sell what little capital they own now (houses, small investment accounts, etc.) to save good money on taxes (not huge money, but meaningful money to people who don't have much) under the expectation that the next administration could easily remove this savings.
Everybody trying to sell quickly (or even the expectation that everybody will try to sell quickly) will drop asset prices, primarily across real estate markets.
The wealthy will buy at those cheaper prices, increasing their share of the capital stock, and the lower/middle classes will have sold the measly capital they had.
In other words, income inequality would get much worse.
You don't get wealthy by selling capital. You get wealthy by accumulating it. That's what the wealthy would be looking to do—and they already have plenty of ways of avoiding and minimizing taxes. The lower/middle classes don't have those options—and every penny counts much more to them.
3
Yes, capital gains should be indexed, BUT then treated as ordinary marginal income at the highest tax rate for the taxpayer.
3
It seems to me that because inflation affects not only the amount of capital gains but also the dollars being used to pay tax on them, inflation-adjusting one but not the other amounts to double-dipping. That is, yes, you have to pay tax on a larger amount because of inflation, but you're paying the tax in dollars that are worth less than the dollars originally used to make the investment, so it balances out perfectly without a special inflation cancelling tax cut.
2
In 1989 New York State introduced a mansion tax to be assessed upon the sale of a home for $1,000,000 or more. There were very few such sales in 1989.
However, in 30 years values have risen so much that even tiny homes in poor condition sell for over a million.
That law should have been indexed to inflation.
Fairness needs to distributed equally— rich and poor alike.
3
A portion of this makes sense, as in all other aspects of the tax code you are only taxed on your real gain, such as profit (sales minus expenses). Inflation does eat away at real gain so you are paying taxes on money that you can’t actually spend the same way. On the other hand, in usual republican fashion this has to get perverted further. I have no idea why you have to treat capital gains differently than earned income. That just makes the hedge fund managers richer. Keep the tax code the same for all types of income, from capital gains to w2 wages but sure- account for inflation along the way. Many Americans own houses they want to sell one day and this may actually be more or a progressive tax change if all income was taxed equally.
2
Interesting article. Reading while on my way to Civil Court to help my niece fight eviction become she lost her job.
5
@Paro5
err, don't you mean because she didn't pay her rent. I guess her landlord should take the hit.
How much will this add to the deficit and how much to trumps wallet? What ever happened to the GOP and a balanced budget?
5
More than 45% of Americans own stock so each person who is a participant would benefit from this capital gains rule change.
Those stock owners are far from the 1% rich.
3
So we should payroll tax on a persons first year of working, and adjust their salary increases for inflation when taxing them? Hard Working Americans already pay MORE for their income than those that do NOT work for their income. You're ignoring the group that makes america great.
I love it when the left screams out rage at any type of tax reform especially when it involves successful individuals that have worked hard and attained the American Dream but remain completely silent as their party moves toward socialism with free unearned benefits like college educations and universal incomes for all. I can't wait to see how that turns out for them.
2
@Fred:
I really, genuinely feel sorry for you, Fred.
Alas, you've drunk deeply of the Teump Kool-Aid, and there's very very little chance of a cure.
Sad. Bigly sad.
1
Fred,
Do you really understand what "socialism" is? We have had "socialism" policies in this country for a long time ie: GI bill, assistance to farmers etc.etc. A healthy & well educated society benefits all of us.
1
This move could also help some moderate investors who sell portions of their portfolios, but the obvious big winners are the big players. And while it's not enough to kick the deficit in a big way, it certainly doesn't help.
But thanks for giving the Dems another example of how Trumpism ain't populism.
3
The class-baiting of the headline writer notwithstanding, there are plenty of non "wealthy" people who would benefit by this adjustment, including 401K and IRA participants. Inflation-indexing is a fairness issue, not a class or wealth issue.
With respect to the administration acting alone, I recall another recent president saying he has "a pen and a phone," so who needs Congress?
3
Now that is a winning GOP strategy for the upcoming elections. Perhaps trump and mnuchin think that only rich folks vote.
How much could this add to the national debt?
As if they care.
6
More welfare for the wealthy. Right now, the top 1% receives more government welfare than the bottom 99%. Where's the moral outrage?
6
Here is something that Democrats should be mulling over for 2021, when they are in power. An annual property tax of 15% on all individuals or families who have a net worth in real estate personal and property which the taxpayer owns or controls through agents or trustees, of whatever kind and wheresoever located in excess of $100 million dollars.
The IRS will make the assessed valuation and upon payment the tax payer can sue to recover any claimed over payment from the government or as a credit against the next year's payment of 15%, These taxes will go to fund programs that benefit the majority of tax payers and public owned infrastructure.
C'on guys fair is fair. You stole this money when you could and now it payback time. Think about it. Turnabout is fair play.
2
@Sheldon Bunin:
You're a dreamer, my friend . . . they'll never capitulate to such a sober proposal.
Nevertheless, I love your intentions and enthusiasm.
2
Our nation is swimming in debt... we're not paying for our country as it is. I'd love lower taxes.... but we can't afford it.
PLEASE, PLEASE, PLEASE VOTE IN NOVEMBER. We must stop this madness. And think about this: how much do Trump supporters really love this country, when they continually back the damaging things that he and his fellow Republicans are doing to undermine all that this country has stood for?
4
I hope voters are paying attention to this strategy. Anticipating a sell off, are they? How about a some breaks for people on fixed income paying supplemental insurance and pharmacy costs that are rising each year? How about figuring out a way to fund Social Security by raising the ceiling on contributions? Whenever Munchkin speaks, I know something greedy is coming in the Land of Awes. Young people should be taking to the streets because they will pay for these policies.
6
Would a reader who is a tax lawyer comment on who would have legal "standing" to challenge such a regulation promulgated by the Treasury Department? The Ninth Circuit's recent decision in Altera, possibly headed to the Supreme Court, involved a challenge to the legality of a Treasury regulation, but that challenge was brought by the taxpayer adversely affected by the regulation.
Here is an Idea: Let’s base all income tax rates on each individuals life time income VS the cumulate inflation for their life time; the buying power of the dollar over that persons life time.
*If an individual’s life time income has kept up with their life time inflation rate then their tax bracket would remain the same.
*If their life time income were above their life time inflation rate, their tax bracket would increase.
*If their life time income was below the cumulative life time inflation rate, their tax bracket would be reduced.
Increase, same, decrease tax rate: All individual tax liabilities each year for individuals would be determined by how much actual income they acquired during their life time when compared with the cumulative inflation during their life time, cradle to grave.
Trump is learning from his role model, Putin, that an "oligarchy"- a small group of people controlling a country- can protect him from the law. He thinks all their money will by a lot of political ads, influence and elections.
Tragically for America, he's right. But will it be enough? We'il know on November 6th.
7
They want to index capital gains taxes to inflation? Yet they refuse to index the minimum wage the same way, and instead treat it like a political football every few years?
Shame.
5
@Petersburgh
Excellent suggestion. That's how old-time congressional negotiation happened.
Let me be the first of your 1,968 commenters to support this notion. The tax code revisions of this year heavily favor corporations, but those businesses will most likely line executive and stockholder pockets and never pass the savings on to their employees. They will use the new tariffs as the excuse to limit infrastructure investment. Those of us blessed enough to be in the top percentage of earners in America, but cursed enough to be living in Big Blue states, will be paying substantially more in US taxes in 2019 than before, both on a percentage basis as well as real dollars. We have lost the deduction of overblown state taxes as well as inordinately high real estate taxes. I will pay 43% tax on the IRA I so carefully funded for 30 years, not the 30 something percent of prior tax years. I will use the cap gains relief for investment -- paying tradesmen for construction and improvements, I will further fund charitable works, free education, healthcare for the less fortunate, affordable housing. I will help send my granddaughters to college. I'm not looking for sympathy, just a pass on the vilification that so often comes our way from those whose bank accounts are smaller than mine. Just because I have a few bucks, doesn't make me a greedy bird. I didn't steat it, I earned it, and I helped many others earn it along the way. I deserve no shame.
3
Didn't the pilgrims escape England for America in 1620 for exactly all the same reasons that we are now reinstating in America? I’m beginning to think that Trump is demanding the boarder wall not to keep immigrants from coming to America but to keep Americans from escaping his tyranny and for the necessity of their tax dollars to pacify the extremely wealthy.
2
American style capitalism has proven once and for all that its greed is limitless. They live in a rarefied world where a tiny minority live in splendor, being whisked away in limousines to private jets to vacation in places that most of us will never even see. We are recreating France in the 1780's before the Revolution: "
The taxation system was burdensome upon the middle class and the more prosperous peasants, given that the nobles were largely able to exempt themselves from it. As a result, there was "an insistent demand" for reform of these abuses of privilege, for an equitable means of taxation and for improved government processes." Wikipedia on the causes of the French Revolution
1
Sell high buy low. Most of the last tax cut is going to stock buy backs. Not supprising that CEO's are big sellers. Now another incentive to liquidate to cash comming in the form of tax relief . Take the tip and sell high. It seems like the elite are selling off the markets to position for another round of severly depressed prices and an accumulation opportunity. Will the dollar survive the trade war long enough to complete the process?
Before some middle class people say (or hear on Hannity), "Hey, this is a good idea, lower taxes on my investments!" I want to give a quick shout out for a Roth IRA, which every middle class person reading this should have!! The earning come out tax free!! Therefore middle class people don't need this plan as proposed.
1
The entire tenor of this article is that, while Trump’s policies may favor investors, workers are losing out. According to an article in yesterday’s WSJ (“Help wanted, degree not needed”), the current shortage of workers has upended the leverage business used to have over job applicants who had to come begging. Now in today’s changed business climate, companies can no longer pick and choose who they want to hire. Thus companies that want to fill their job ranks can no longer use the prerequisite of a college degrees as a way to winnow out job applicants. As a result, Intel no longer requires its new hires for engineering jobs to actually have a degree in engineering. Other companies are allowing newly hired programmers to be self-taught instead of having done formal coursework or completed a degree in the field. Most surprisingly, many employers have relaxed drug test requirements and are not doing criminal background checks as a way to “weed” out workers so desperate is the demand.
I believe this trend also applies to the states which will no longer have to compete with other states as much as they used to by giving companies obscene tax breaks which shifted the tax burden to other businesses which were already located there. They are now in a stronger position to tell these companies where to go.
Are we to imagine that this is still Obama’s economy? His own words betray him—“Those jobs are never coming back.” Trump has proven otherwise.
2
The deficit is increasing, we've promised to give Farmers 12 Billion dollars, we're going to pay for that wall Mexico was suppose to pay for, the cost of goods will go up because of the Tariff War, and everyone is paying less taxes. It's a shame the Republicans created this future disaster, and do not take responsibility. All that to not elect a women President.
8
A booming economy means only one thing to Republicans---tax cuts for themselves.
It does not mean:
Repairing our crumbling infrastructure
Making healthcare more affordable and accessable
Providing quality child and elder care
Making education more affordable
Strengthening our defenses re: Russian hacking
6
Here's an interesting thought for may American cousins,... what about giving capital gains tax exemptions to the 0.1% who donate and equivalent $$ to social infrastructure. How about the Koch Ohio interstate system... or the Mnunchin/JFK international airport. For those who don't want to participate... Use it or Lose it!
No pretending anymore, we're now officially a full-fledged oligarchy NOT a democracy.
2
This is what happens when power is in the hands of the 1%. The most shocking aspect of this kind of abuse is the total lack of consideration of the 99% who get to foot the bill for this giveaway.
Trump won’t be here forever or for much longer for that matter, but we will always have Bach.
Pretty soon the rest of us will be indentured slaves. This man and his administration is so scary I find it hard to look at newspapers or the TV news because it just keeps getting ugly everyday. I can't help but wonder what people were thinking. But voting later has been the lesser of two evils. However, Trump is exactly who he was then and is now only interested in helping his friends and acquiring more wealth and pay no taxes. Definitely Don the Con man.
Enough already!
People must pay taxes, the government must govern, stop the giveaways....
1
I wonder how the poor people who voted Trump/GOP feel.
Hope to be rich one day?
Hope it'll trickle down?
Or Guns/Bible are more important?
5
@Sam Kathir:
Yes, and isn't ironic that the phrase "Bible/guns" are mashed together. . .?
Oddly enough that so accurately characterizes the modern Republican party -- God and Country (and the Holy Second Amendment).
Something tells me that Chist might have something to say about this delusional, righteous platform . . . and that it would be VERY disconcerting to the audience.
2
My dad used to say that everyone worries about money. The poor worry about getting money, and the rich worry about losing money. I guess he was right. But I'm left to wonder, what can you get with 2 billion that you can't get with 1 billion? Ask anyone in this corrupt administration!!
America will be bankrupt within a generation. It will take another generation after that to sort out the mess. By then, most of Florida will be underwater.
4
This Republican Regime has no shame. This is a blatant boon for the wealthy which includes all those currently in power. Will they ever be stopped? I suppose they’re not really worried about the midterms. With the Russians continuing to work unchecked to interfere with our election, to work to decrease democratic turnout, the Republicans know their power is stable. Democrats need a super majority to win. These are dark times
Absolute power corrupts absolutely. Trump isn't being policed in the slightest by the Republicans in Congress, so he's becoming more and more emboldened to contemplate crazy actions like this -- which, if it came to pass, would of course inure to his personal benefit to the tune of countless millions.
November 2018: vote.
Remember this as you vote, knowing that inflation will rise as a result and that will chew up that tiny tax advantage you might have temporarily gotten. Mr. Trump does not work for the average Sally and Joe, he is all about the big money friends who pat his back at the golf course. That is why he goes golfing so often.
2
It’s so reassuring to see Steven Mnuchin working so hard on behalf of his constituency, looking for loopholes and shortcuts to avoid the messy complications of the political process. Just think, if we all behave ourselves, like dumb peasants outside the walls of their castles, maybe they’ll wave at us from their limousines as they go off to Tiffany’s to shop for Christmas. Yes, Virginia, there is a Santa Claus. No silly, not in Youngstown or Pittsburgh. Just here in the Golden City.
Now let’s sit down a write Mr Mnuchin and King Donald a nice thank you note.
1
Because the know-nothings who support Trump will never be informed of this from the state propaganda channel, i.e., Trump news, I mean Fox news, the robber barons are cleaning out the treasury while the going is good.
9
At least they're being honest for once. How about an administrative-law change that requires church attendance on Sundays or ex-post-facto punishments for abortion while you're at it?
5
The assumption that only the weathy pay capital gains is faulty. A number of years ago, a friend was setting up a new business, and I helped in the initial organization. He awarded me a very small percentage ownership. He is now selling the business and my share of the proceeds will be a capital gain for me. Well under $20K.
The fact is, in recent times, many have been forced into self employment for various reasons. As they retire or otherwise sell or liquidate their businesses, capital gains come into play. To assume they are all weathy fatcats shows ignorance of reality.
8
In many investments, the inflation is the capital gain. This is certainly true of real estate. If you buy a property, hold it, then sell it, the increase is all due to inflation. If you improve the property, you could say that some of the increase comes from the improvements, but the cost of improvements is basis, meaning that it wouldn't be taxable.
This will exempt the Trumps and Kushners from virtually all taxes when they sell any of their holdings.
You might think, wait a minute. The housing recovery isn't counted as inflation, otherwise inflation would be running at about 10% or more. But when the Kushners sell a property at 50% over what they paid for it, how much you want to bet they'll claim the increase was inflation?
Are you feeling a bit of cognitive dissonance yet?
12
You’re forgetting that contributions to 401(k’s) are tax-deferred, the idea being that the distributions will be taxed at a lower rate when one is retired and presumably in a lower tax bracket. I don’t think that indexing is at all relevant to the policy of favored tax treatment for long term capital gains which is meant to discourage market volatility or playing the market for a quick buck instead of for steady investment.
1
Two thoughts:
If this is good enough for capital gains why not for everyone's income as well? Adjust it for inflation that year before taxing it.
Since people need their assets for retirement, saving them money is not a bad idea.
3
The real point of these ridiculous tax cuts: One day a Democrat will be in the White House, and on that day the Republicans go to the TV cameras and say "Oh no! There's a huge deficit! The only responsible thing we can do about it is eliminate Social Security, Medicare, and Medicaid. We know these programs are among the most popular things our government has ever done, but still it has to happen."
And then the Republicans will shut down the government, repeatedly, trying to force said Democratic president's hand. And if that Democratic president gives in to their demands, the very next election they will campaign on "The Democrats took away your Social Security!"
That's why it's not enough to vote for a Democrat. You need to vote for a Democrat with the guts to stand up to that kind of bullying.
44
That has always been their plan. Tax breaks to cause huge debt and then claim there are no funds available for basic entitlements such as social security, Medicare and infrastructure.
13
Too bad the Democrats weren’t too good on jobs.
@Ed Obama's record on jobs is better than Trump's, and look at what he inherited. Why so many insist on creating falsehoods to support their political agendas rather than actually getting informed, I do not know.
Of course, the Republican-controlled Congress could easily block this move by changing the current law to make it clear that the President has no such power.
Some of us like to think that the US House of Representatives has the "Power of the Purse,"
9
@JPG Yes, they could. What faith do you have that they will? So far, they barely get out of bed when trump makes secret deals with Putin. They harrumph and grumble then they go back to bed. Useless Congress of the Government Owned by Putin (GOP).
1
Inflation is a social cost. Prices may have to go up, but there are now more people in the job force who have more money to spend. They won’t be needing those depressing dollar stores and thrift shops anymore, but they’ll be shopping at Macy’s now.
In some countries, rich people live in a "palace built upon a dung heap." India, Pakistan, the Philippines, Brazil, and Haiti come to mind. In cities of these countries you'll easily find barricaded palatial mansions surrounded by squalor and filth. In other countries, like Germany and Japan and Sweden and Canada and New Zealand, rich people still live lavishly but with greater accountability. These countries aren't palaces built upon dung heaps. Rather, they are generally very nice places to live for virtually everybody including taxi drivers and restaurant servers.
The United States used to be one of the latter countries, but the attitudes of many rich Americans have become what I would call "Brazilified." This is very bad news for the country. For when enough members of the wealthy minority decide that they would prefer to live in a palace built upon a dung heap, that means members of the non-wealthy majority will be subjected to revenue extraction.
28
Let's vote them out!
1
I don't know who would have standing to bring that lawsuit, but surely they would prevail, given a century of case law equating basis with economic outlay. Treasury and the IRS of course would have to comply with the Administrative Procedure Act, which means proposed regs, hearings, public comments, and written evaluation of the comments. Even if they had clear rulemaking authority here, I can't see them getting it accomplished without a real brouhaha. Which is why this, as the article notes, far from new idea has never been tried before.
2
Social security retirement benefits are indexed because it would not be fair to have your payments effectively cut by inflation. That’s fair. Likewise, income tax rate bands are adjusted for inflation because it would not be fair to be moved into a higher tax bracket when the real value of your income hasn’t changed. That’s fair. Now, if you buy an asset, sell it twenty years later, and its value has increased by the same as the inflation of the dollar, you will not have realized any actual gain, but you will end up paying a tax on the illusory gain. Is that fair?
4
@JPEC Which is why there is a capital gains rate. The lower rate covers the inflationary increase. This is plainly just double dipping.
1
@JPEC Of course it's not fair, but don't expect any of the class warriors commenting here, to agree!
1
@HG
Does it? Maybe sometimes, clearly not other. Indexing is a more accurate way to account for inflation. The rate should be whatever is decided on, but should not reflect some factor for inflation.
Dreamers, their belief that they CAN. Its an amazing show of human spirit, human will. So glad the very rich, and the managers that put them there and increase their wealth, are going after THE LOW HANGING FRUIT. Making money through policy changes. Would the rest of America have such an opinion of themselves, and not only remove this attempt, but advance their own, for the ACA, for infrastructure, public schools, teacher pay, small business. The Very rich don't believe in the market, they believe in BUYING the market.
7
Joe. Until the market crashes like the sub prime mortgage fraud perpetuated by the one percent who did not pay any price for their crime. The rest of the country did. All these market proponents then demanded and got a govt handout. I thought they did not like socialist policy. They just don't like it for anybody but the super rich. There is class warfare in this country. The one percent is at war with the rest of us.
2
As an investor I have wanted capital gains figured on this basis for a long time. BUT then the income to be taxed as ordinary income, not by a special tax of 15% as it is now.
8
@KathyC, the reduced tax rate on long term capital gains already serves the purpose intended by adjustment of gains by the consumer price index.
3
If you are going to adjust the basis for Capital Gains for inflation, why not also adjust the Minimum Wage for inflation?
41
"Corporations are People, My Friend."
- Mitt Romney, "Moderate" Republican
14
@Jeff, One wonders if people like Romney can't tell corporations from people because they have no emotions themselves.
1
@Jeff
So are unions my friend. So are unions.
--Oxford 96
The President can only sort of sidestep Congress on this. After all, Congress can pass new laws. The problem is a GOP Congress won't lift a finger. Cap gains rate should be back where it was under Reagan!
2
@Mford
It is time we stop referring to Congress in party terms.
The accurate way to assess it is in Swamp terms. It is the Establishment vs the populists.
The interesting item to watch will be how Congress votes on this one, since they are certainly "the rich".
I don't get it. Is he TRYING to throw the mid-terms?
7
Republicans want to give the country to the rich. Democrats want to give it to illegal immigrants. If you're not in one of those groups, you will be supporting them. America, it was fun while it lasted.
1
Well, the first part of your statement seems to be true. You probably knew that all of those times you voted against your own interests. But Democrats don't want to give the country to illegal immigrants. We want them to receive due process, and we know that the wall won't work. There are better ways to control our borders. Most of the people affected by the shameless zero tolerance policy are Central Americans asking for refugee status. We already have a system for addressing that, too.
2
@Azathoth, people with concerns for the planet advocate global population stabilization.
US politics is so patently dishonest because most of it is deluded projection.
Really Obama was the deporter in chief
At least now they're mullers. (pun intended)
2
Why don't these crooks just come clean.
Abolish all taxes on the rich and have the poor subsidize them by paying all the taxes.
It is approaching that now at least with income tax, the consumers pay trillions of dollars and corporations are down to like 200 billion a yr., a drop in the bucket for them.,
13
@Paul - the wealthy pay the vast majority of the taxes. Try saying thank you?
2
@DRS And they own the vast majority of the wealth, aka, have bought Congresspeople to redirect the wealth to themselves.
I want all my past pay records adjusted for inflation at the SS office - that way we'll all get a decent check. What's good for the fat goose should be good for the starving gander.
Doesn't that sound fair?
19
Taxpayers with capital gains are already protected from inflation, by cost-of-living increases in the capital gain tax rate thresholds. And the inflation component of fair market value of low basis assets is compensated for by lower tax rates on capital gains. A third reason this is a bad idea is that it vastly increases complexity of calculating gain. Presumably, they wouldn't allow a corresponding increase in capital loss for inflation, but that only points up how much a windfall this proposal represents.
6
More "trickle down" economics? The more wealth that is sent to the top winds up trickling down to us paeans(?) . . . wink, wink. The only question is whether the GOP acts out of arrogance, or just outright contempt for the middle class and poor? Probably both. Oh, and you just know what is coming next . . . the GOP will start squawking that social security and medicare need to be cut because there is no money for it.
14
What? Do legislators have no shame or brains? They throw around words like billions like it’s play money. Want to visualize what a million, billion or trillion dollars really looks like? Try this!
If you start throwing down on the ground 1 dollar every second, and you could do this without stopping, 24/7, do you know how long it would take to reach 1 million dollars? About 11-1/2 days. What about a billion? How about 34 years. A trillion? 134,000 years. Monopoly was a great game when I was young. When you lost all your money, you just started over. When our government does it, we all lose. How do you like that game?
8
Always amusing to read the class envy permeating the comments. How do these same readers feel about Soros, Buffet, and even Cynthia Nixon using every tax advantage possible?
4
Buffett said he thinks his taxes should be higher. I don't think any wealthy person needs their taxes lowered. I think more of the super rich should give a lot of it away, like Bill Gates and Buffett. Of course there's a class distinction between most commenters and the very rich! So snide.
1
At least Buffett and Cynthia Nixon have publicly released their tax returns.
It has nothing to do with class envy. It has everything to do with fiscal insanity.
How will all those Trump supporters who abhor deficits going to spin this one?
4
Perhaps it really is time to roll out the tumbrils. Or, maybe, not quite yet, as Madame Defarge says, "When the time comes, let loose a tiger and a devil; but wait for the time with the tiger and the devil chained—not shown—yet always ready."
2
Seems like Trump is doing his best to foul the midterms up for the Republicans. Good job Trump keep it up!
6
Another smokescreen. They cannot control spending so it is no matter what they collect.
1
The worst thing about this move, is the process. This Administration is totally bypassing all the structures of our government to benefit a very few, they are making the Presidency Imperial. And the only reason they got to this place is because of the inflated value of GOP votes thanks to Citizens United.
First they took Americans' real estate equity in the housing crash, then they took away American youth's future by usurious interest rates on student loans, and for profit colleges that profited no one, then they stole health care, our right to collectively bargain, addicted us, deplete our public education, poisoned our drinking water, demolish NATO, EU, UN... we are the cash cows of the likes of Mnuchin, the Kochs, and ugh the Trumps. Those mobsters look at all of us and go ca-ching.
22
Steve Mnuchin, Plunderer of the Treasury!
Horrible thought - What if this is a prelude to massive inflation in the US?
The US has a trillion dollar deficit, the tax breaks to corporations doesn't seem to be generating as much money as was planned, Russia sold off a bunch of US debt, etc. If the trade war continues and Trump annoys China sufficiently and they start dropping US debt ...
I suppose, hyper-inflation would make US workers look cheaper to the world and we'd have fewer imports and more exports. Tariffs are good, after all.
4