White House considering tax incentive for more Americans to buy stocks, sources say
The proposal would be part of a new batch of proposed tax cuts.
WASHINGTON — As part of a forthcoming package of proposed tax cuts, the White House is considering ways to incentivize U.S. households to invest in the stock market, according to four senior administration officials familiar with the discussions.
The proposal, one of many new tax cuts under consideration, would see a portion of household income treated as tax-free for the purposes of investing outside a traditional 401(k). Under one scenario, a household earning up to $200,000 could invest $10,000 on a tax-free basis, although officials noted these numbers are fluid.
"Nothing's ruled out," said one senior administration official. "Nothing's been ruled in, either."
The development comes as President Donald Trump seeks reelection this fall. He has sought to distinguish himself from his potential Democratic rivals by accusing of them of pursuing "socialist" policies while he has touted tax cuts and deregulation under his administration.
After the Great Recession, the percentage of American households owning stocks fell to 52% from 62% before the crisis, according to Gallup. That percentage reached 55% in 2019, a year when the stock market hit record highs.
The tax break, if enacted, would represent "a pretty substantial amount of money for people" to have for retirement, according to Stephen Moore, economist at the conservative Heritage Foundation and close confidante of the White House.
