Trump administration weighs cutting capital gains tax on homes before midterms

In a recent interview with a host at one outlet, Kevin Hassett said President Trump is reviewing options to lower capital gains taxes on residential property sales before the upcoming midterms. Suggested measures include tying the exemption to inflation and eliminating gains on homes valued at $2 million or less. The White House spokesman Kush Desai said any official announcement will come directly from the administration.

Policy scholars point out that Republicans have discussed similar cuts for some time, and a bipartisan House proposal, the More Homes on the Market Act, would raise the exclusion to $1 million for joint filers and index it to inflation. Senate sponsors, including John Cornyn, argue the change would encourage owners to sell and increase market inventory. Critics warn the move could mainly benefit wealthier homeowners and distort investment incentives, while housing experts say broader supply-side reforms are needed.