President Trump said he would push to cap the capital gains tax rate at 15 percent if he is elected to a second term, in comments to Fox News‘s Maria Bartiromo on Thursday.
Trump stated earlier this week that his administration was considering a capital gains tax cut as an economic relief measure amid the coronavirus pandemic. However, tax policy falls under the purview of Congress, and the Trump administration would almost certainly not be able to obtain the approval of the Democrat-led House.
“We’re…considering a capital gains tax cut, which would create a lot more jobs,” Trump said at a news conference on Monday. Treasury Secretary Steve Mnuchin voiced support for the idea on Wednesday, but cautioned that the cuts would have to be passed through legislation.
Trump has renewed his push for a capital gains tax cut after abandoning the idea in September 2019. At the time, the president concluded that the cuts would not benefit middle-income earners.
“President Trump was thoroughly briefed on the complex economic, legal and regulatory issues, and concluded that at this time he does not feel enough of the benefits will go to the middle class,” a White House spokesman told the New York Times after Trump dropped the idea.
In his Thursday comments, Trump again pitched a capital gains tax cut and alleged that if elected, Joe Biden would raise taxes by as much as $4 trillion.
“If Biden gets in, the market will crash,” Trump said.