The Trump administration is about to help rich Republican donors get a tax break as they look to bypass Congress to help Donald Trump’s chances at reelection in 2020.
According to Bloomberg, Trump is planning to sign a new executive order that would result in a cut to the capital gains tax, which largely benefits wealthy investors.
“Most of the benefits would go to high-income households, with the top 1% receiving 86% of the benefit, according to estimates in 2018 by the Penn Wharton Budget Model,” Bloomberg says. “The policy could reduce tax revenue by $102 billion over a decade, the model found.”
The cut would come in the form of indexing capital gains to inflation, which Bloomberg writes would “slash tax bills for investors when selling assets such as stock or real estate by adjusting the original purchase price so no tax is paid on appreciation tied to inflation.”
Looks like the wealthy will continue to get wealthier while the rest of will continue to struggle. All this thanks to Trump.