When Trump Proposes Giving More Money to the Rich, NYT Mind Readers Know That He’s Doing it to Increase Growth

August 12, 2020

Most might think that when Donald Trump proposes a tax break for the rich it is because he wants to give more money to the rich. Fortunately, the NYT has a staff of mind readers who can keep us better informed. Therefore we are told:

“Mr. Trump and his advisers have regularly considered unorthodox tax maneuvers that they believe would spur economic growth, including reducing the taxes that investors pay on profits earned from selling assets like stocks or bonds (emphasis added).”

There is a large body of research indicating that lowering the capital gains tax rate would have a minimal impact on growth. The evidence would suggest that lowering capital gains taxes, which will almost exclusively benefit the rich, is not a good way to boost growth, but the NYT knows that Trump and his advisors believe otherwise. (It is worth mentioning that most middle class people have their stock holdings in retirement accounts, which would not be affected by a reduction in the capital gains tax.)

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