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Cruz Proposes Inflation-Linked Capital Gains Tax Cut

4/30/2026

23 4 Full Breakdown

Summary

Story summary

Senator Ted Cruz (R-TX) proposed tying capital gains taxes to inflation to cut the tax burden before the midterms.
He said the plan would push homeowners to sell, freeing supply and spurring stock sales, requiring near-unanimous GOP support.
GOP leaders aim to pair it with President Donald Trump’s 2025 “One Big Beautiful Bill,” a move critics Neera Tanden and Reed Galen label a trickle-down hack for the wealthy.

History

Historical Context

In August 1981 President Ronald Reagan signed the Economic Recovery Tax Act, cutting capital-gains tax from 28% to 20% and starting inflation indexing of brackets in 1985. Revenue from capital gains rose 50% to over $18 billion by 1983. Echoing that legacy, Senator Ted Cruz proposed a 2024 bill to index capital-gains taxes to inflation.

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Story summary

Senator Ted Cruz (R-TX) proposed tying capital gains taxes to inflation to cut the tax burden before the midterms.
He said the plan would push homeowners to sell, freeing supply and spurring stock sales, requiring near-unanimous GOP support.
GOP leaders aim to pair it with President Donald Trump’s 2025 “One Big Beautiful Bill,” a move critics Neera Tanden and Reed Galen label a trickle-down hack for the wealthy.

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