Why It Matters
Capital gains taxation currently does not account for an inflation adjustment. This unfair tax treatment means the longer an investor holds the capital investment, the lower the real gain of the asset will be.
If the calculation of capital gains taxes includes an inflation adjustment, there will be a robust benefit to millions of Americans that own land, a home, a 401(k), stocks, bonds, and those enrolled in the Federal Employees Retirement System (FERS). The benefit of this policy change will extend to most Americans, not just millionaires and billionaires as the Socialist Left would lead you to believe.
How It Can Happen
- Legislative Action – Of course Congress could pass new law to right this wrong in the tax code. Unfortunately, too many Democrats are unwilling to work with President Trump and instead are cheering for a recession.
- Administrative Rulemaking – President Trump’s administration has the legal authority to make this commonsense change. There is legal precedent for the term “cost” to include inflation.
- Inform & mobilize our organizations’ membership, reaching millions of Americans and educating them on how they will personally benefit from this policy change through social networks, emails, and other communications.
- Media Outreach – Target President Trump and the investment community by booking interviews with outlets they get their news from including Fox Business, Bloomberg, CNBC, and others.
- This is an issue for 2020 because voters want to see strong economic growth and more money in their pockets. If President Trump takes executive action to make the change in the near-term, the benefits to U.S. economy will be evident and he will receive the credit.