Forced divestiture is expected to allow the president to defer paying any federal taxes on those gains potentially for years — if ever, the people said. If he held his new, post-divestiture investments until death, the capital gains would go untaxed. It's not yet clear if the ethics proposal, hashed out by Republican Senator Thom Tillis of North Carolina and Democratic Senator Ruben Gallego of Arizona, could undergo more changes to win Trump's agreement. Without tax deferral, Trump could be forced to immediately pay a 20% capital gains tax on the difference between what he paid for an asset and what he sells it for. Other top Trump officials, including Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, have already availed themselves of a special tax provision that allows senior officials to avoid paying capital gains tax on divestments.