This just in, from the New York Times:
The Trump administration is considering bypassing Congress to grant a $100 billion tax cut mainly to the wealthy, a legally tenuous maneuver that would cut capital gains taxation and fulfill a long-held ambition of many investors and conservatives.
What the bleep? The executive branch can’t change tax law, can it?
Let us not forget that Mnuchin is a parasite who made a bundle foreclosing on people during the 2008 meltdown.
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 â€œcostâ€ 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.
Even I can figure out that if you’ve got rising inflation and low capital gains rates, you could erase a whole lot ofÂ profit for tax purposes.
â€œIf it canâ€™t get done through a legislation process, we will look at what tools at Treasury we have to do it on our own and weâ€™ll consider that,â€ Mr. Mnuchin said, emphasizing that he had not concluded whether the Treasury Department had the authority to act alone. â€œWe are studying that internally, and we are also studying the economic costs and the impact on growth.â€
Would this provide economic stimulus?
Â Independent analyses suggestÂ that more than 97 percent of the benefits of indexing capital gains for inflation would go to the top 10 percent of income earners in America. Nearly two-thirds of the benefits would go to the super wealthy â€” the top 0.1 percent of American income earners.
Nope, probably not.
Making the change by fiat would be a bold use of executive power â€” one that President George Bushâ€™s administration considered andÂ rejected in 1992, after concluding that the Treasury Department did not have the power to make the change on its own. Larry Kudlow, the chairman of the National Economic Council,Â has long advocated it.
Larry Kudlow is the moron who declared a month ago that the U.S. deficit was going down. Grover Norquist also thinks this is a great idea.
â€œThis would be in terms of its economic impact over the next several years, and long term, similar in size as the last tax cut,â€ Mr. Norquist said, suggesting that making the change would raise revenue for the government by creating new economic efficiencies and faster growth. â€œI think itâ€™s going to happen and itâ€™s going to be huge.â€
He and others said last yearâ€™s tax cut would also pay for itself, but despite strong economic growth,Â corporate tax receipts have plunged and the deficit has soared.
Sober people with calculators weigh in:
According to the budget model used by theÂ University of Pennsylvaniaâ€™s Wharton School of Business, indexing capital gains to inflation would reduce government revenues by $102 billion over a decade, with 86 percent of the benefits going to the top 1 percent. A July report from the Congressional Research Service said that the additional debt incurred by indexing capital gains to inflation would most likely offset any stimulus that the smaller tax burden provided to the economy.
â€œIt is unlikely, however, that a significant, or any, effect on economic growth would occur from a stand-alone indexing proposal,â€ the report said.
Of course it won’t. But, you know, I really want Mnuchin to push for this so that it gets in the news and everybody hears that the Trump Administration is pushing for another giveaway to the rich. Because tax cuts for the rich are unpopular with voters. This is from June 2018:
This month, anÂ NBC/WSJ pollÂ of registered voters in swing congressional House districts found that a candidateâ€™s support for the tax law passed in December might cost them in this Novemberâ€™s election.
Forty-two percent of voters were less likely to vote for a candidate who supported the tax law compared to 36 percent who said that they were more likely. That difference might seem small but in a highly competitive House race, itâ€™s huge.
I also want The Creature to keep threatening to shut down the governmentÂ if Congress doesn’t fund his fool wall. And then I want to see lots and lots of ads juxtapoxing Trump’s threats with videos of him swearing Mexico will pay for the wall. Even the Democrats ought to be able to use this nonsense to club the entire Republican party to death.
See also Paul Krugman, Trump’s Supreme Betrayal.
Must not have gotten ALL of the money the first time around.
So now they want to 'hoover'-up more money from lower classes and pop those bucks straight into the always hungry wallets of the uber-rich?
'Go ahead. Make our day…'
My comment got "twitted."
Mnuchin and Trump are birds of a feather, two crooks and con men who specialize in ripping off the weak and gullible. They see the US, in that same vein, and its people, treasury and traditions, collectively, as their biggest mark yet. They will not be satisfied until there is no more public wealth left to take.
"Even the Democrats ought to be able to use this nonsense to club the entire Republican party to death"
I'm not so sure, the dems have let this Wall funding canard gain traction, the time to shut Trump down was last year when he threatened this, or this year when he decided to take 3000 brown kids hostage, Chuck, Nancy they just sit on their hands. I think they see polling that says they are too divisive? I say it' time for new leadership. As far as the tax cuts, it sounds like the same people that benefited from the last one will benefit again, middle-class folks don't make enough for these tax cuts to make a real difference? They'll sell it to the rubes, don't worry.
Another bridge too far and one more to burn. More tax cuts for the richest of the rich you say? Not the craziest thing in the news today as a twitter war broke out between the ruling Alt-right and John Birch inspired wings of what was once the respectable Republican party. Yikes. Bannon still works the orange puppet. From Reuters:
"The globalist Koch Brothers, who have become a total joke in real Republican circles, are against strong borders and powerful trade. I never sought their support because I don’t need their money or bad ideas," Trump wrote in a post on Twitter.
"Their network is highly overrated, I have beaten them at every turn."
Not sure why Mnuchin has to go through all these financial gymnastics to change the law? Can't they just change "would be subject to capital gains" to "wouldn't be subject to capital gains"? DONE!
uncledad — there’s still that pesky Constitution in the way, but I’m sure Trump is working on a plan to get rid of it.
"Alt-right and John Birch inspired wings of what was once the respectable Republican party"
When exactly was the republican party respectable? They have been stealing elections and playing the "southern strategy" since I've been alive and I'm late into my fifth decade?
Oops, sometimes I forget that not all remember Eisenhower and the like. Sorry uncledad. In those days the South was a Dem wing and the Rs much hated as the party of Lincoln in those parts.
Kudlow is a moron, but a venal one. Don't know what it is going to take to run these scumbags out of town, but they will rape the country before they leave.
No need to apologize its just that after 50 plus years of being the party of the 1% (and the racist rubes who support them) I don't believe the GOP deserves any credit for their past good deeds, those days are long gone. Just as the democratic party does not deserve to be associated with the dixiecrats, that is an old wing-nut trope that they still pull out when cornered.