Director Kudlow says Trump won’t back down in China trade talks.
Justin Fox at Bloomberg Opinions gives his take on the history of economic growth by postwar presidencies, from the Bushes (the worst), to Nixon and Obama (nearly as bad), to Kennedy/Johnson, (amazing – although Johnson quickly dissipated his legacy from JFK).
From the NY Times:
President Trump won a victory for freer trade last week when he and the president of the European Commission, Jean-Claude Juncker, agreed to find ways to lower tariffs and other barriers to each other’s exports. The outlines of the deal are still sketchy, but it calls for the Europeans to buy more American petroleum, soybeans and manufactured goods and for Mr. Trump to reduce his auto and steel tariffs.
Excerpt from The National Pulse:
While much of the attention in Washington D.C. has turned to the GOP’s “Tax Cut 2.0” blueprint, yesterday The New York Times reported that a “Tax Cut 1.5” may be in the works. According to the story, the Trump administration is considering a unilateral move to index capital gains to inflation.
As I have written before, indexing capital gains to inflation would be a huge move to turbocharge economic growth. Currently, when individuals invest in stocks (without using a tax-exempt vehicle like a 401k) or real estate, they are subject to real capital gains taxes on fake gains. This is because the IRS does not account for any devaluation in the dollar (inflation) when calculating the net-profit on an investment. This tax bill gets extremely costly when compounded over years or decades.
NY Times: Trump administration considers indexing capital gains for inflation, eliminating real taxes on fake gains.
The NY Times reports that the Trump administration is actively looking at using its regulatory authority to index capital gains for inflation, eliminating real taxes on fake gains.
Policy and Government
In the WSJ, Mike Solon says tax cuts have busted the ‘secular stagnation’ myth.