Sens. Ted Cruz (R-TX) and Jim Inhofe (R-OK) introduced this week a bill designed to halt capital gains tax on inflation.
Cruz and Inhofe said the Capital Gains Inflation Relief Act of 2018 would expand economic growth and encourage more investment in the economy by taxing based on true economic gains, versus taxing inflation.
“It is a pro-growth and pro-investment policy decision,” Cruz said. “It encourages people to invest more capital into businesses and when you’re investing more capital in businesses, it means you’re hiring more people, buying more equipment, raising wages and driving economic growth. We accomplished a great deal in 2017, but we need to keep moving forward in 2018 and do more. When it comes to tax cuts and tax simplification, there is a lot more we can and should be doing.”
Cruz said he would continue working with his colleagues to reach the desired goal of simplifying tax laws.
“We took a big step last year to make the tax code fair and simple for all Americans, but more can be done to ensure taxpayers keep their hard earned money to invest in themselves and their families,” Inhofe said. “Today’s federal tax policy fails to account for inflation, which disincentivizes Americans from saving for the future. This simple improvement will make the tax code more efficient, improve fairness and encourage long-term capital investment.”