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Investing.com-- U.S. President Donald Trump is considering calling on Congress to cut capital gains taxes as part of his policy pledges for the midterm election, Bloomberg reported on Tuesday.
Trump is also considering exemptions for certain home sales, Bloomberg reported, citing a top economic aide and a former administration official.
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Reports of potential tax cuts come as Trump and the Republican party race to shore up support, amid a sustained decline in popularity ahead of the November midterms.
High living costs, fuel prices, and a protracted war on Iran have soured sentiment towards the current administration.
“He (Trump) wants to hit people with the promises (of) what we’re going to do if Republicans have power in the future,” National Economic Council director Kevin Hassett told Fox Business’ Larry Kudlow.
“You can expect a lot more policy between now and the midterms,” Hassett said.
Kudlow, who had led the council during Trump’s first presidency, said he had recently discussed indexing capital gains with the president, and that Trump was open to the idea.
Indexing capital gains reduces taxes by adjusting them for inflation.
But the prospect of more tax cuts has elicited a mixed reaction from lawmakers, especially amid a steadily growing fiscal deficit. The Congressional Budget Office on Tuesday said the fiscal deficit is estimated at $1.8 trillion in the first 10 months of 2026.
This was in part driven by the Trump administration being forced to refund a bulk of its trade tariffs collected over the past year, after the Supreme Court struck down most of Trump’s tariffs earlier this year.
