President Donald Trump is looking to roll out new policy proposals ahead of the November midterm elections, with capital gains tax changes and a larger exemption for home sales among ideas gaining attention in Washington.
Capital Gains Take Center Stage
National Economic Council Director Kevin Hassett said Tuesday that Trump wants to enter the midterm campaign focused on what Republicans could deliver if they retain power in Congress.
"He wants to hit people with the promises of what we are going to do if the Republicans have power in the future, Hassett said in an interview with Fox Business host Larry Kudlow. "
"So you can expect a lot more policy between now and the midterms, as we’ve been talking about, and I’m sure that’s why he was talking to you, Larry, about your great ideas on capital gains."
Earlier this year, Republican Sens. Ted Cruz (R-TX) and Tim Scott (R-SC) pushed for indexing capital gains to inflation, with their proposal estimated to reduce federal revenue by about $200 billion.
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Home Sales Also in Focus
Kudlow also floated a larger exemption for home sales, potentially excluding homes worth $2 million or less from capital gains taxes.
The current exemption stands at $500,000 for married couples filing jointly.
A larger exemption could also help retirees avoid higher Medicare premiums that can result when a sizable taxable gain from a home sale pushes their income into a higher Income-Related Monthly Adjustment Amount bracket.
Kudlow served as Director of the National Economic Council under the President, making him one of Trump’s top economic advisers during his first term.
Trump Faces Midterm Headwinds
Republicans face a difficult political environment ahead of the November midterms, with voters showing growing concerns about the economy and Trump’s handling of key issues.
A recent Reuters/Ipsos poll found Democrats holding a slight edge over Republicans on which party voters trust more to manage the economy, while Trump has also faced broader approval challenges.
Republican National Committee Chair Joe Gruters, however, remains confident that Republicans can retain majorities in both chambers.
The midterm elections will take place on November 3.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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