Trump’s next tax cut should make Americans owners

America may be entering a period of extraordinary economic opportunity. Artificial intelligence could drive a wave of investment, construction, productivity, and growth. The question is whether ordinary Americans will own enough of that growth to benefit from it.

That makes tax policy about more than rates and revenue. If Washington wants Americans to build wealth, it should make it easier to own appreciating assets — stocks, funds, homes, and businesses — and keep more of the gains they earn over time.

Building wealth requires more than rising wages. Americans need the ability to acquire assets, hold them, and benefit from compounding over decades.

President Donald Trump is reportedly looking for new policy wins ahead of the 2026 midterm elections, including capital gains reform. The White House and congressional allies are considering indexing capital gains for inflation and creating a new exemption for certain home sales, reportedly including homes worth $2 million or less.

Both ideas move in the right direction. They would let Americans keep more of the returns on investments they have held for years and reduce tax penalties that can discourage people from selling appreciated assets.

The usual objection is that capital gains reform is a giveaway to the rich. But IRS data cited by Americans for Tax Reform show that 74% of tax returns reporting capital gains come from households with incomes below $200,000. Millions of Americans own stocks through brokerage accounts, mutual funds, and retirement plans. The tax code should not treat long-term wealth building as something reserved for the affluent.

Inflation makes the problem worse. A taxpayer can owe capital gains tax even when part of the apparent gain simply reflects a dollar that has lost purchasing power. Indexing gains for inflation would make the tax apply more closely to real economic profit rather than paper gains created by rising prices.

Housing presents a second opportunity. Expanding or exempting capital gains treatment for certain home sales could encourage more owners to put appreciated properties on the market. Many older Americans remain in homes that no longer fit their needs, in part because selling can result in a sizable tax bill.

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Reducing that penalty could make downsizing more attractive and free larger homes for younger families. It wouldn’t solve the housing shortage — America still needs to build more homes — but it could help the existing housing stock move to people who need it.

The broader principle is more important than either proposal. Building wealth requires more than rising wages. Americans need the ability to acquire assets, hold them, and benefit from compounding over decades. Ownership is how economic growth becomes personal.

The White House should therefore think bigger than a handful of tax tweaks. The next phase of Trump’s economic agenda should aim to turn more Americans into owners.

A serious capital gains overhaul could encourage people to invest, save, start businesses, sell homes when it makes sense, and accumulate wealth over time. If the coming AI boom creates enormous new fortunes, ordinary Americans should have a better chance to own a piece of it — not merely watch Sam Altman get richer.