Trump Considering Unilateral $100 Billion Tax Cut On The Wealthy

Cost of living adjustments for stocks?

If President Trump has his way, that is exactly what will take place.

The President is considering a unilateral move where he would allow stock investment to be adjusted to offset inflation. This is akin to what is already done with Social Security whereby recipients get a regular cost of living adjustment to offset inflation.

Under this plan, one would get the inflation difference when factoring the capital gains tax on a long-term investment. Hence, a $100,000 stock purchase in 1980 which was sold today for $1 million, would owe gains on $900,000. Using what the President proposes, the basis would be $700,000.

This would be a $100 billion tax cut on those holding stocks, mostly the wealthy.

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