And here we go again:
An idea liked by many? https://t.co/Ev9uqa1hoj
— Donald J. Trump (@realDonaldTrump) August 30, 2019
The tell, as always, is whenever our Stable Genius says that something is liked by many. Many being many members of the Trump Crime Family.
“But what is this thing,” you ask.
The article that Prznint Stupid re-Tweeted from Steve Forbes is written by Grover Norquist an Ayatollah Ted Cruz. In the article, Norquist & Cruz (worst accounting firm ever) urge Prznint McDeals to bypass congress and just give rich people ANOTHER tax cut because: why not?
“How would this work?,” you ask.
If you invest $1M Ameros (in stocks, real estate, even art) and cash out your ill-gotten gains five years later for $10 million, then you owe the government a capital gains tax based on the $9M Ameros you “earned.” (And to paraphrase Fran Lebowitz, no one “earns” $9M — you steal it.)
Under the tax cut plan Trump tweeted, you would adjust the value of the initial investment (the $1M Ameros) for five years’ worth of inflation. Let’s say that inflation makes that initial $1M now worth $6M (for exaggeration purposes only)—now your capital gain is “only” $4M Ameros so you owe the government a lot less in taxes!
“I can now drown the gubmint in the bathtub,” Grover did not giggle while playing with his rubber ducky.
“Can he do that,” you ask incredulously.
“Efforts to peg gains from the sale of investments like stocks, artwork and real estate — which are currently taxed at a lower rate than other income — face one major hurdle in the form of a 1992 opinion by the DOJ’s Office of Legal Counsel that bars the executive branch from indexing on its own.
“The White House said last year that Trump had asked the Treasury to look into easing the capital gains tax, though the department has long maintained it does not have the legal authority to alter the tax.
“Trump said last week he believed that he could index capital gains unilaterally, “but I would need a letter from the attorney general.”
So we’re depending upon strategic hire AG Bill ‘Low’ Barr to say Nyet to our Grifter-in-Chief, the Chosen one, King of the Jews, Cheeto Christ Stupid-Czar? We’re totally eff’ed in the dark.
And who would benefit, what would this do?
“A 2018 analysis by the University of Pennsylvania found that the majority of the benefits from indexing capital gains would go to the top 1 percent of earners.
“The senior administration official said the White House was being mindful of any perception they were trying to benefit the wealthy, in addition to any impact on the swelling federal deficit.”
The economy is weakening, and all the Republicans can think to do to stimulate the economy is give their donors even more money. Of course, this is all that they think about, they have no other policies to speak of.
Even if Prznint Stupid is worried about the optics of this plan to do it before the 2020 Goat Rodeo, he’s showing us that he likes the idea, and will do it if he wins a second term.
And you better believe that he’ll cut the social safety net to pay for it. Afterall, it’s gonna cost a lot of money to give Tiff the Ivanka-style plastic surgery she needs so he won’t be so ashamed to be seen with her.