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

China President Xi tries to ease trade tension between America and China in his Boao presidential address.

Monica McNeil

2018-04-02 07:33:00 Monday ET

China President Xi tries to ease trade tension between America and China in his Boao presidential address.

China President Xi JinPing tries to ease trade tension between America and China in his presidential address at the annual Boao forum. In his vulnerable att

+See More

It may be illegal for institutional investors to buy-and-hold large equity stakes in a less competitive industry with high market concentration.

Olivia London

2017-11-27 07:39:00 Monday ET

It may be illegal for institutional investors to buy-and-hold large equity stakes in a less competitive industry with high market concentration.

Is it anti-competitive and illegal for passive indexers and mutual funds to place large stock bets in specific industries with high market concentration? Ha

+See More

Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes.

Apple Boston

2023-03-14 16:43:00 Tuesday ET

Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes.

Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes. Thomas Pogge and Krishen

+See More

We may need to reconsider the new rules of personal finance.

Daphne Basel

2019-03-05 10:40:00 Tuesday ET

We may need to reconsider the new rules of personal finance.

We may need to reconsider the new rules of personal finance. First, renting a home can be a smart money move, whereas, buying a home cannot always be a good

+See More

U.S. and Chinese trade negotiators hold constructive phone talks after Presidents Trump and Xi exchange reconciliatory gestures at the G20 summit.

Joseph Corr

2019-08-04 08:26:00 Sunday ET

U.S. and Chinese trade negotiators hold constructive phone talks after Presidents Trump and Xi exchange reconciliatory gestures at the G20 summit.

U.S. and Chinese trade negotiators hold constructive phone talks after Presidents Trump and Xi exchange reconciliatory gestures at the G20 summit in Japan.

+See More

Investing in stocks is the best way for people to become self-made millionaires.

James Campbell

2019-06-25 10:34:00 Tuesday ET

Investing in stocks is the best way for people to become self-made millionaires.

Investing in stocks is the best way for people to become self-made millionaires. A recent Gallup poll indicates that only 37% of young Americans below the a

+See More