Trump Weighs Capital Gains Tax Cuts Ahead Of Midterms
US President Donald Trump is considering cuts to capital-gains taxes ahead of the November midterm elections. According to sources, Trump is developing policy commitments that Republicans could use to sway voters.
National Economic Council Director Kevin Hassett confirmed that Trump is working on additional policy initiatives, but no formal proposals or legislation have been released yet.
One option under discussion involves indexing an asset's cost basis for inflation. This would effectively tax only the gain remaining after changes in the price level are removed. Former National Economic Council Director Larry Kudlow has proposed exempting gains on sales of homes valued at $2 million or less, which is a broader benefit than current rules.
The impact of any capital-gains indexing regime on digital assets like Bitcoin and Ether depends on how future legislation defines eligible assets. If cryptocurrencies are included in the scope of the proposal, it could affect crypto investors.