The Republican party will shortly turn over control of the House to the Democrats, but does that mean there are no more opportunities to cut taxes and spur growth?
Not at all.
Larry Kudlow—the President’s Chief Economic Advisor—has previously promoted a way a president could cut taxes without going through Congress.
It appears that the tax statutes give the president the authority to adjust the calculation of investment taxes so that we get taxed on actual gains, not increases in prices due to inflation.
Imagine you bought a share of stock for a hundred dollars and sold it several years later for 110 dollars, but there had also been ten percent inflation. You didn’t really make any money, you just broke even, but the IRS would tax you on that alleged gain. It appears that the President has the authority to change that without going through Congress.
It’s time for the Kudlow plan.