Larry Kudlow: "It's time to cut the capital gains tax. Right now. If there's a 3.0 reconciliation budget bill that requires only 50 Republican votes plus Veep Vance for 51, the GOP can do it…"
Stephen Moore: Unleash Prosperity Hotline – Both President Trump and House Speaker Mike Johnson have indicated in recent days that they support our UP idea of indexing capital gains tax for inflation for all assets, or at least for residential real estate. This would free up housing and capital and raise up to $100 billion in revenue by incentivizing sales of assets. It looks to be a key feature of any end of summer tax cut.
Earlier this week Larry Kudlow made the case in the New York Sun:
It's time to cut the capital gains tax. Right now. If there's a 3.0 reconciliation budget bill that requires only 50 Republican votes plus Veep Vance for 51, the GOP can do it…
Right now empty nesters don't need their multi-bedroom homes, but they really can't afford to pay a $500,000 capital gains tax which comes mainly from President Biden's 21 percent inflation during his four years in the White House…
[Newt] Gingrich [says] that "when we cut the capital gains tax, when I was speaker, revenue was at $60 billion from capital gains. After we cut it, it jumped to $200 billion" …Actually, no one should have to pay a tax on inflation. So if we index the capital gains tax for inflation, people would just pay tax on the real appreciation of their home or other assets, and that is much fairer.
We're not just talking about the rich by the way, but really middle-class homeowners who might have bought their house maybe 30 or 40 years ago, and the inflation mounts up…
Cutting the capital gains tax would be huge. Let's get going.
“Steve: Forbes: Larry Kudlow is right: a capital gains tax cut is more than a tax policy. It’s a growth Policy. Indexing gains for inflation and updating the home sale exemption would unlock housing suly, help families, and strengthen the economy. It’s time to act.”
This is NOT a "tax cut for the rich.” As this UP chart shows, the top 1% pay more cap gains tax when the rate is lowered.
Steve Moore – a former Wall Street Journal Editorial Page writer – is Chief Economist for The Texas Insider and a former Senior Economic Adviser to Donald Trump. A Senior Fellow at FreedomWorks, he is Co-Founder of the Committee to Unleash Prosperity along with Steve Forbes & Art Laffer. Using compelling charts, videos, and maybe even a little humor, Moore and the Committee's free Daily Newsletter provides information not readily available anywhere else – with short, timely inside updates on the economy, D.C. politicals, and numerous other issues to help you stay informed and allow you to be the smartest person in the room.
