Burman Talks to Newsweek About Trump’s Capital Gains Tax Proposal

August 12, 2026

Newsweek

Leonard Burman

Public Administration & International Affairs Department

Economic Policy

Federal Government

Taxation

United States

Newsweek

Leonard Burman

Trump is reportedly considering indexing capital gains to inflation and expanding home-sale tax exemptions, changes that Kevin Hassett and Larry Kudlow indicated he has expressed interest in. Critics argue the changes would primarily benefit wealthy asset-holders and could be politically risky given ongoing affordability concerns.

“These are both terrible policy and politics,” says Leonard Burman, professor emeritus of public administration and international affairs. The benefits of both would “disproportionately accrue to the wealthiest households,” given the existing distribution of assets in the U.S., he says.

“Given that voters are burdened by high and rising housing costs, they’d be especially dismayed at the thought of a policy that would boost the demand for minimansions, and further push up land prices,” Burman says.

Read more in the Newsweek article, “Trump’s Capital Gains Tax Proposal: These Americans Would Benefit.”