President Donald Trump is reportedly considering eliminating the capital gains tax, which can boost investment, reward entrepreneurship, and strengthen the economy. By removing the tax on profits from stocks, property, and other assets, the president's move aims to unleash private capital that has been held back due to taxation.
On Sunday, while speaking to reporters, President Trump said he is considering eliminating the capital gains tax on home sales.
"I think it can be a great incentive for a lot of people that really need money," Trump said.
The reporter then suggested that eliminating the capital gains tax on home sales—combined with Federal Reserve Chair Jerome Powell stepping down—could help boost the housing market.
"Well, I think if Jerome Powell stepped down, it would be a great thing, I don't know if he's going to, but he should," Trump responded.
🚨Just in: President Trump is now considering eliminating capital gains tax on home sales
— The Calvin Coolidge Project (@TheCalvinCooli1) July 14, 2025
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Eliminating the capital gains tax on home sales could offer several potential benefits, including encouraging homeownership and boosting real estate market activity.
Without capital gains tax, homeowners may be more willing to sell and move, thereby freeing up housing inventory and making it easier for families to relocate for job opportunities, better school districts, or lifestyle changes. It could also increase buying and selling activity, leading to a stronger housing market, more construction, and greater demand for related services, such as home improvement, real estate agents, and movers. In addition, taxing gains made from years of property investment or appreciation can be seen as a penalty on success. Eliminating the tax would allow homeowners to fully reap the benefits of their investment.
While President Trump's Big Beautiful Bill doesn't cut rates overall, it added additional loopholes and incentives for investors, especially in startups and real estate. Additionally, investors can continue to defer or eliminate capital gains taxes by reinvesting in distressed areas, especially rural ones, which provides a significant tax break for long-term investments in low-income communities.
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