The Digester

GOP Sens. Ted Cruz and Tim Scott asked Treasury Secretary Scott Bessent to index capital gains for inflation to deliver about a $200 billion tax cut without Congress, citing investment and housing benefits while legal and distributional concerns raise doubts.

Senators Ted Cruz and Tim Scott asked Treasury Secretary Scott Bessent to index capital gains for inflation, seeking roughly a $200 billion tax cut without new legislation.
They argue the change would boost savings, spur investment, create jobs and reduce a housing lock in by encouraging longterm homeowners to sell.
The Hill reviewed the senators letter and The Washington Post first reported the development.
Legal experts and a 1992 Justice Department Office of Legal Counsel opinion say such a unilateral change would likely require congressional approval and face litigation.
A 2018 Penn Wharton estimate found indexing capital gains could reduce federal revenue by about $102 billion over ten years, with most benefits going to the top 1 percent.
Economists and policy analysts including Jason Furman and Kyle Pomerleau warned the move would need other inflation adjustments and may be legally and economically problematic.

Cruz and Scott ask Treasury to enact $200 billion capital gains tax cut without Congress

Sources