White House National Economic Council Director Larry Kudlow said Wednesday that the Trump administration would not seek a capital gains tax cut through executive order.
When asked if the administration would act “unilaterally” through an executive order on a capital gains tax cut, Kudlow responded: “No. We are looking at middle-class income tax cuts and capital gains tax cuts to spur investment and jobs and liquidity.”
“The president is a tax cutter,” he added, while presumptive Democratic candidate Joe Biden’s “team wants to raise taxes.”
Kudlow added that he “wouldn’t mind going back” to a 15% capital gains tax rate.
Treasury Secretary Steven Mnuchin said in a press briefing earlier in the day that a capital gains tax cut would need to come through legislative action. “I stand with the secretary on that,” Kudlow said. “It’s not part of an EO.”
While Trump can’t change the tax rate without an act of Congress, he could order the Treasury to index capital gains rates to inflation. Kudlow did not discuss whether Trump was considering this move, which would likely be challenged in court.
Meanwhile, Senate Democratic leader Chuck Schumer of New York, and House Speaker Nancy Pelosi, D-Calif., said in a joint statement Wednesday afternoon that the administration refuses to budge on the size and scope of the next COVID-19 legislative package.
“An overture was made by Secretary Mnuchin to meet and he made clear that his televised comments from earlier today still stand: the White House is not budging from their position concerning the size and scope of a legislative package,” Schumer and Pelosi said.
“Democrats have compromised. Repeatedly, we have made clear to the administration that we are willing to come down $1 trillion if they will come up $1 trillion. However, it is clear that the administration still does not grasp the magnitude of the problems that American families are facing.”
Schumer and Pelosi added that they’ve “again made clear to the administration that we are willing to resume negotiations once they start to take this process seriously.”