President Trump criticizes the WTO and proposes indexing capital gains taxes to inflation for U.S. investors.

Charlene Vos

2018-08-29 10:37:00 Wed ET

In an exclusive interview with Bloomberg, President Trump criticizes the World Trade Organization (WTO), proposes indexing capital gains taxes to inflation for U.S. investors, and then expresses no regrets over appointing the Fed chairman Jerome Powell. Trump points out that WTO rules have been an unfair trade deal for America because the U.S. often has to respond passively to assuage many WTO complaints and concerns. When Trump comes into office, America reverses the U.S. long-run disadvantage and starts to win trade lawsuits because the Trump administration threatens to withdraw America from the WTO if this key international organization declines to shape up. Meanwhile, Trump indicates that Canada may or may not continue to be part of the NAFTA trade deal. Moreover, Trump rejects the European Union's trade proposal to eliminate tariffs on automobiles.

In the same interview with Bloomberg, President Trump proposes indexing capital gains taxes to inflation, and this change would slash taxes for investors when they sell assets such as stocks, bonds, and real estate properties. This index can adjust the original purchase price for inflation and therefore helps spur job creation and economic growth since investors would face minimal taxes on erroneous phantom income. These tax cuts can benefit small-to-medium enterprises (SMEs), owners, founders, and entrepreneurs. National Economic Council top adviser Larry Kudlow indicates that the Trump administration hopes to bypass Congress to implement this expansionary tax policy. Trump opponents contend that the fiscal stimulus may exacerbate economic inequality in America.

In accordance with the universal notion of central bank independence, President Trump likes and respects Powell as the Fed chairman who should be free from political influence. Trump expresses no regrets over appointing Powell to succeed Yellen in the Federal Reserve System's top post. However, Trump hints to the new Fed Chair that he should seek to help accommodate U.S. economic affairs during the current interest rate hike. Trump expects the greenback to stabilize within some reasonable bounds as the Fed chairman pencils in some further interest rate hikes in September and December 2018. This interest rate hike can continue its current cycle until December 2019 as the core CPI inflation rate surges above the neutral 2% target.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

American parents often worry about money and upward mobility for their children.

Becky Berkman

2019-01-03 10:38:00 Thursday ET

American parents often worry about money and upward mobility for their children.

American parents often worry about money and upward mobility for their children. A recent New York Times survey suggests that nowadays American parents spen

+See More

U.S. automobile and real estate sales decline despite higher consumer confidence and low unemployment as of October 2018.

Fiona Sydney

2018-10-27 09:34:00 Saturday ET

U.S. automobile and real estate sales decline despite higher consumer confidence and low unemployment as of October 2018.

U.S. automobile and real estate sales decline despite higher consumer confidence and low unemployment as of October 2018. This slowdown arises from the curr

+See More

Former Bank of England Governor Mervyn King provides his deep substantive analysis of the Global Financial Crisis of 2008-2009.

Monica McNeil

2023-03-07 11:29:00 Tuesday ET

Former Bank of England Governor Mervyn King provides his deep substantive analysis of the Global Financial Crisis of 2008-2009.

Former Bank of England Governor Mervyn King provides his deep substantive analysis of the Global Financial Crisis of 2008-2009. Mervyn King (2017) &nb

+See More

Ivanka Trump and Treasury Secretary Steven Mnuchin press the case for GOP tax legislation.

Jonah Whanau

2017-10-15 07:38:00 Sunday ET

Ivanka Trump and Treasury Secretary Steven Mnuchin press the case for GOP tax legislation.

Ivanka Trump and Treasury Secretary Steven Mnuchin both press the case for GOP tax legislation as economic relief for the middle-class without substantial t

+See More

Chinese Belt-and-Road funds large international infrastructure investment projects primarily in East Asia, Central Asia, North Africa, and Italy.

Fiona Sydney

2019-04-15 08:37:00 Monday ET

Chinese Belt-and-Road funds large international infrastructure investment projects primarily in East Asia, Central Asia, North Africa, and Italy.

Chinese Belt-and-Road funds large international infrastructure investment projects primarily in East Asia, Central Asia, North Africa, and Italy. Chinese Be

+See More

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation.

Jacob Miramar

2019-02-11 09:37:00 Monday ET

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation.

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation. Share repurchases

+See More