Republicans Pitch Plan To Protect Investments From ‘Inflation Tax’: What To Know

Republicans Pitch Plan to Protect Investments From ‘Inflation Tax’: What to Know

As inflation ticks upward, Republican lawmakers are pushing for capital gains taxes to be indexed to inflation, which could translate into a significant tax cut for American investors, homeowners, and savers. However, critics say it could put the government further in the red. Sen. Ted Cruz (R-Tex.) sponsored the Capital Gains Inflation Relief Act of 2025 to index capital gains to inflation. In March, Cruz and Sen. Tim Scott (R-S.C.) sent a let…