[Asia Economy New York=Correspondent Baek Jong-min] It has been reported that U.S. President Donald Trump is pursuing tax-exempt benefits related to stock investments as part of his middle-class tax cut policy.
On the 14th (local time), CNBC cited a senior government official saying, "A plan to provide tax incentives for stock investments is being considered."
The official said, "No options are excluded, and nothing has been decided yet," but it has been reported that a plan to provide tax-exempt benefits on stock investments up to $10,000 annually for individuals with an annual income below $200,000 is being discussed. Larry Kudlow, Chairman of the White House National Economic Council (NEC), stated, "We are also considering the same benefits for bonds as well as stocks."
This is understood as part of a plan to boost the stock market in conjunction with the push for middle-class tax cuts to gain an advantageous position in the presidential election.
The proportion of households investing in U.S. stocks has remained at 55% currently, down from 62% before the 2008 financial crisis. Although the U.S. stock market rose about 30% last year and retirement pension subscribers benefited, the income earned directly by individuals through investments has inevitably been relatively small.
CNBC explained, "President Trump’s strategy is to differentiate himself by labeling Democratic candidates as socialists while proposing additional tax cuts."
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