This guy knows he's got the Gullibillies in the bag - or as Jacques Parizeau would say, the lobster pot.
After just adding a trillion and a half dollar deficit burden onto the shoulders of America's rank and file (their kids, mainly), Trump is mulling over another $100 billion handout to the rich by slashing the already marginal taxes on capital gains.
Steven Mnuchin, the Treasury secretary, said in an interview on the sidelines of the Group of 20 summit meeting in Argentina this month that his department was studying whether it could use its regulatory powers to allow Americans to account for inflation in determining capital gains tax liabilities. The Treasury Department could change the definition of “cost” for calculating capital gains, allowing taxpayers to adjust the initial value of an asset, such as a home or a share of stock, for inflation when it sells.Trump figures he can do this by executive decree, bypassing Congress.
Currently, capital gains taxes are determined by subtracting the original price of an asset from the price at which it was sold and taxing the difference, usually at 20 percent. If a high earner spent $100,000 on stock in 1980, then sold it for $1 million today, she would owe taxes on $900,000. But if her original purchase price was adjusted for inflation, it would be about $300,000, reducing her taxable “gain” to $700,000. That would save the investor $40,000.
And therein lies Trump's genius. At a time of a booming economy, don't pay down debt. Cut taxes. Add debt knowing that, if you introduce more cuts to the taxes that the richest of the rich pay, all that extra debt will fall on the shoulders of those wage-earning idiots, the Gullibillies, who were stupid enough to vote for you. He's not only cutting their throats but they handed him the knife.