Senate Democrats Urge Mnuchin Not to Cut Capital Gains TaxesAugust 8, 2019, 12:17 PM HST (Updated August 8, 2019, 12:17 PM)
US Sen. Mazie K. Hirono (D-Hawai‘i) more than 40 other Senate Democrats wrote Secretary of the Treasury Steven Mnuchin earlier this week urging against unilaterally cutting capital gains taxes for the wealthiest Americans by an additional $100 billion over 10 years.
In their letter, the Senators argued that cutting the capital gains taxes for the wealthy would defy longstanding Treasury Department and Justice Department policies.
“The proposal would do little to nothing to boost the economy as it would provide a windfall for existing capital assets rather than incentivize new investment,” the senators contended in their letter. “The Congressional Research Service notes that ‘it is unlikely… that a significant, or any, effect on economic growth would occur from a stand-alone indexing proposal.’”
The senators’ letter follows a letter sent 21 Republican senators urging Secretary Mnuchin to circumvent Congress and index capital gains rates to inflation.