Trump is considering capital gains relief ahead of the midterm elections,
including inflation-indexing of capital gains and raising the home-sale
exclusion (currently $250,000 individual / $500,000 married). Indexing would tax
only real gains — e.g., a 50% nominal gain with 20% inflation taxed only on the
residual real appreciation — effectively lowering the tax burden on long-term
holdings of equities, real estate and businesses and likely supporting asset
prices and trading activity. Larry Kudlow publicly promoted the idea in July.
These are policy signals, not law: direct rate changes or expanded exclusions
require congressional legislation, and any administrative inflation-indexing
would face substantial legal challenge.
