- The White House is investigating whether it has the power to restrict Congress and reduce taxes unilaterally, reports The New York Times.
- Congress holds power to enact tax policies and pass taxes, and any tax reduction measure could trigger blowbacks from both Democrats and Republicans.
- The executive department has the power to defer taxes, as it did when it instituted a tax evasion holiday.
- President Trump is supporting a cut in capital gains, which experts say would benefit the most affluent wealthy households.
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The White House will determine whether President Donald Trump has the power to restrict Congress and cut taxes on his own, reports The New York Times.
The newspaper quoted an official of the administration as granting anonymity. However, such a move to cut personal income or corporate taxes does not seem to be on the horizon so far.
With the collapse of incentive negotiations, the president began signaling that he could bring back additional tax cuts after signing a series of executive orders on Saturday.
The White House did not immediately respond to a request for comment.
Closing the collection of tax services by the end of the year was out of the question. It defends its pay by workers until 2021 – unless Congress approves its rejection.
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Although the president can delay many tax payments for up to a year, Congress has the authority to establish tax policies under the constitution. That power includes forgettable tax bills. Any measure aimed at the legislature’s environment could trigger the challenges of the court and criticism from Democrats and Republicans.
Congress is deadlocked on further economic relief with the drawing of the presidential election closer. Trump said in a White House press release yesterday that the administration is considering an array of tax cuts in an effort to rebuild a sputtering economy.
“We are looking very seriously at a capital gains tax cut and also at an income tax cut for middle-income families,” he told reporters.
The cut in capital gains seems to be gaining steam in the administration. It is a step to reduce the levies that investors incur on profits when they sell assets such as shares. On Wednesday, Treasury Secretary Steven Mnuchin said Trump supported it in a Fox Business interview.
White House Director National Economic Council Larry Kudlow said the administration would push to reduce the tax rate on capital gains to 15% from 20%. He denied that an executive order was pending.
The benefits of a capital gains tax cut would most likely go to the top 1%, according to estimates from the Penn Wharton Budget Model, with wealthy households receiving 86% of the benefit.
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