The Trump administration is said to be considering a tax break that would bypass Congress, delivering $102 billion in cuts to wealthy Americans who own investment assets.
The Treasury Department is mulling whether it could use its authority to connect capital gains tax liabilities to inflation, as reported by The New York Times. This method would shield more of the gains from taxation because the initial cost of the asset would be adjusted upward to account for inflation over the time period between buying the asset and selling it.
Such a change would provide a major tax benefit to wealthy Americans. By one estimate, two-thirds of the $102 billion in cuts would be enjoyed by the top 0.1 percent of America's income earners. Households in the bottom to 40th percentile of income earners would see no benefit, while those in the 40th to 80th percentiles -- the middle class -- would see just 1 percent of the benefit.
https://www.cbsnews.com/news/how-trumps-next-tax-cut-would-benefit-americas-richest/
This post was edited by Beans/SilentGeneration at September 13, 2018 9:36 AM MDT
Baba 