Trump’s Right to Target Private Equity |
Inflation in home prices and healthcare is perhaps the biggest reason that swing voters are shifting to the Democrat side in elections. With the midterms less than ten months away, Republicans need to take initiative against a culprit: private equity.
Last week Trump announced his brilliant plan to ban private equity firms from buying single-family homes, which has put their prices out of reach for young adults. Gen Z is the pivotal voting bloc that decides elections now, and if they cannot afford a home then they are more likely to vote against Republicans.
“People live in homes, not corporations,” Trump observed. “For a very long time, buying and owning a home was considered the pinnacle of the American Dream,” but the buying up of these homes by private equity speculators has made homes unaffordable for Gen Z.
Wealthy private equity managers typically enjoy a tax rate lower than what Gen Z pays, which is the opposite of how tax rates should be structured to encourage work by young adults. Private equity managers are allowed to take much of their compensation under the lower capital gains rate, rather than the higher income tax rate that everyone has to pay on their earnings from manual labor or learned professional work.
Depreciation deductions, which are also unavailable to most family homeowners, give private equity a........