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Treasury contemplates how to cut another $100 billion in taxes, mainly benefiting the rich

Key Points
  • The Treasury is considering ways to bypass Congress and cut $100 billion in taxes that affect mainly wealthy investors.
  • The cut would come by changing how investors calculate the initial value of assets, which could affect the amount of capital gains tax liability.
Treasury Secretary Steven Mnuchin answers questions from the media outside the White House June 27, 2018 in Washington, DC.
Win McNamee | Getty Images

The wealthy could be in line for a substantial tax cut, if the Trump administration gets its way.

The Treasury Department is considering bypassing Congress to cut $100 billion in taxes, mainly for the rich, according to a report Monday in The New York Times. The report is based on an interview with Treasury Secretary Steven Mnuchin earlier this month during the G-20 summit in Argentina.

Mnuchin told the newspaper the Treasury was examining whether it could use regulatory powers to allow taxpayers to account for inflation in calculating capital gains tax liabilities. That would allow taxpayers to adjust the initial value of an asset, such as a home or shares of stock, for inflation when selling it, the NYT said.

"If it can't get done through a legislation process, we will look at what tools at Treasury we have to do it on our own and we'll consider that," Mnuchin told the newspaper.

The move would likely be welcomed by affluent investors, who are liable to pay capital gains taxes on investments that could date back decades.

Read the NYT's complete story here.