Sen. Ted Cruz (R-TX) and Grover Norquist, president of Americans for Tax Reform are encouraging the Trump Administration to index capital gains to inflation.
Cruz and Norquist outlined thoughts on the topic in Real Clear Markets, highlighting the economic benefits of the tax policy for Americans of all walks of life, as well as the bipartisan support such a move has had in the past.
“Over the longer term, a capital gains tax cut spurs the growth of new businesses, increases the wages of workers, enhances consumer purchasing power, and grows the economy at large, resulting in more overall gains to be taxed,” Cruz and Norquist wrote. “It’s no wonder the Democrats supported the policy in the past. Even Senate Minority Leader Schumer said as a Member of the House in 1992 if we really want to increase growth, there are proposals that we can do.”
The pair noted they would be for indexing all capital gains and savings and borrowing.
“There is still much untapped potential across our economy, and we’re committed to unleashing it,” Cruz and Norquist wrote. “One such way to do that is by eliminating the unfair inflation tax, a practice that penalizes Americans of all walks of life – from workers saving for retirement to farmers and ranchers selling off a parcel of land to acquire capital for new equipment and machinery that would help grow their family business.”
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