The Trump administration and some Republican senators believe the $1.2 trillion tax cut that is blowing up the national debt isn’t quite enough.
The administration is considering trying to use an executive order to cut capital gains taxes. The move would benefit mostly the wealthiest 10% of Americans and add $100 billion to the national debt.
The Congressional Budget Office reported this spring that the national debt will rise from 78 percent of the economy to 105 percent of the economy over the next decade.
The 2017 tax cut, along with increased spending in the budget deal recently signed by the president, will add another $1.7 trillion to the national debt, according to the Committee for a Responsible Federal Budget.
Analyses show Trump has added an estimated $4.1 trillion to the country’s debt during his time in office. This from the man who made a campaign promise to erase the national debt if he is in office for eight years.
Now he’s considering ordering the Treasury Department to change the way capital gains taxes are calculated. Currently people pay taxes on the difference between what they paid for a stock, home or other asset and how much they sell it for.
But the new plan would adjust the original purchase price for inflation. Indexing to inflation could cut the taxes on longer held assets by half or more.
Using an executive order to cut capital gains taxes is on shaky legal footing as a legal opinion in 1992 said the Treasury Department doesn’t have such authority.
But there is no reason to test the law. Republicans always portrayed themselves as the champions of reducing the national debt. But like on so many other issues, Republicans in Congress have abandoned fiscal conservatism as they follow lock-step in line with a president bent on bankrupting the country in order to aid the wealthy.