President Donald Trump on Thursday said he was considering linking capital gains taxes to inflation. Speaking with Bloomberg News in the Oval Office on Thursday afternoon, Trump told the publication: "I'm thinking about it." Reductions to capital gains are seen by some as benefiting the ultrarich, including hedge funds and private-equity firms, with a cut trimming the tax bills on the sale of stocks, real estate and other assets depending on the going rate of inflation. Trump economic adviser Larry Kudlow has argued that such a move would promote job growth and economic expansion. In commentary last year, Kudlow, who had been a longtime CNBC contributor, explained how he viewed capital gains "perverse" effects on Wall Street investing: "Consider this: You invest $1,000 and, after ten years, you sell that investment for $1,200. But if inflation averaged 2.5 percent in that period, the $1,200 you receive will be worth less in real terms than the $1,000 you invested. And yet, under current law, you will pay a tax on your $200 capital gain." Kudlow estimated then that pegging capital gains taxes to inflation "would by 2025 create an additional 400,000 jobs, grow the U.S. capital stock by $1.1 trillion and boost gross domestic product by roughly $500 billion," citing economic research. To be sure, skepticism about the merits of such an approach to capital gains abounds. A Penn Wharton Budget Model analysis released in the spring estimates that the top 0.1% of earners, in particular, would reap more than 60% of the tax cut. The middle class, by contrast, would get a mere 0.1%. Another analysis projects that such a plan would cost $102 billion over 10 years, wrote MarketWatch's Robert Schroeder earlier in the month.