Piling it on

31 July 2018 By Gina Chon Follow @GinaChon

Treasury Secretary Steven Mnuchin wants to cut capital-gains tax bills by accounting for inflation. It’s sensible to assess the true value of costs and profit. But it’d mostly benefit the wealthy and add to what may be a $1.1 trln deficit in 2019. It also smacks of self-interest.

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The U.S. Treasury Department is studying whether it has the regulatory authority to allow individuals to include inflation as part of their calculation in assessing capital-gains tax, the New York Times reported on July 30.

Treasury Steven Mnuchin said the department could change rules to allow individuals to adjust the initial value of an asset to account for inflation.

Mnuchin said it’s unclear whether the Treasury Department has the power to unilaterally change the rule. Usually, significant tax changes require legislation approved by Congress.

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