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Ted Cruz, Tim Scott asking Treasury to approve $200B tax cut without congressional approval

Senators Cruz and Scott seek a $200 billion capital gains tax cut via executive action to boost savings and investment before the 2026 midterm elections, with most benefits to the wealthy.

  • On Tuesday, Sen. Ted Cruz and Sen. Tim Scott urged Treasury Secretary Scott Bessent to use executive power to cut federal capital gains taxes, estimating roughly $200 billion in tax cuts.
  • Indexing would adjust an asset's purchase basis so a $100 1990 investment sold for $300 would be taxed on roughly $70, reducing taxable gains for inflation.
  • Analysts warn that nonpartisan models like Penn Wharton project 63% of benefits would flow to the top 1%, with the bottom 90% receiving just over 2%.
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Bias Distribution

  • 43% of the sources are Center
43% Center

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The Fiscal Times broke the news in on Tuesday, March 3, 2026.
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