U.S. Sen. Jim Inhofe (R-Okla.) and Sen. Ted Cruz (R-Texas) today, on Tax Day, introduced the Capital Gains Inflation Relief Act of 2018. This bill ends capital gains tax on inflation, which will expand economic growth and encourage more investment into the economy, by taxing based on true economic gains, versus taxing inflation.
“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,” Sen. Inhofe said. “Today’s federal tax policy fails to account for inflation, which disincentivizes Americans from saving for the future. I first introduced this bill in 2007, and it’s time for us to revive it in light of last year’s tax victories. This simple improvement will make the tax code more efficient, improve fairness and encourage long-term capital investment—which will have a direct and positive impact on our nation’s economy.”
“It is a pro-growth and pro-investment policy decision,” Sen. Cruz said at a press conference. “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, it means you’re buying more equipment, it means you’re raising wages, and that you’re driving economic growth. That is yet another example of what we need to be delivering real results. 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 and I’m going to continue working to try and bring Republicans together to get that job done and to honor our promises.”
Full text of the bill can be found here.