US President Donald Trump is considering asking Congress to cut capital gains taxes as part of his campaign promises for the midterm elections, Bloomberg reported on Tuesday.
Trump is also considering introducing tax breaks on the sale of certain types of homes, Bloomberg reported, citing a senior economic adviser and a former administration official.
Reports of a possible tax cut come as Trump and the Republican Party seek to bolster voter support amid steadily declining approval ratings ahead of the November midterm elections.
The high cost of living, fuel prices, and the protracted war with Iran have undermined trust in the current administration.
“He (Trump) wants to tell people what we intend to do if Republicans gain power in the future,” National Economic Council Director Kevin Hassett said on Fox Business with Larry Kudlow.
“We should expect many more initiatives before the midterm elections,” Hassett added.
Kudlow, who chaired the council during Trump’s first term, said he recently discussed indexing the capital gains tax with the president and that Trump is open to the idea.
Capital gains indexation reduces the tax burden by adjusting the taxable base for inflation.
However, the prospect of further tax cuts has sparked a mixed reaction among lawmakers, especially against the backdrop of a steadily growing budget deficit. The Congressional Budget Office reported on Tuesday that the budget deficit for the first 10 months of 2026 is estimated at $1.8 trillion.
This is partly because the Trump administration was forced to refund a significant portion of tariffs collected over the past year after the Supreme Court earlier this year ruled most of Trump’s tariffs illegal.
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