Read twice and referred to the Committee on Finance.
The bill adds a new Code section to allow inflation-indexed basis (using the GDP deflator) instead of adjusted basis when computing gain or loss on certain assets held over three years (generally excluding corporations). It covers common stock (including certain foreign-traded stock), digital assets recorded on cryptographically secured distributed ledgers, and tangible capital/1231 property.
Progressives emphasize distributional costs and revenue loss concerns
Major tax change with fiscal cost and distributional implications; needs broad coalition and offsets.
The bill adds a new Code section to allow inflation-indexed basis (using the GDP deflator) instead of adjusted basis when computing gain or loss on certain assets held over three years (generally excluding corporations).
It covers common stock (including certain foreign-traded stock), digital assets recorded on cryptographically secured distributed ledgers, and tangible capital/1231 property.
The adjustment increases basis by the percentage change in the GDP deflator between acquisition and disposition (rounded to nearest percentage point), contains anti-abuse, related‑party, RIC/REIT, partnership, S-corp, short-sale, depreciation, and documentation rules, and applies to assets acquired after Dec 31, 2025.
Substantive, revenue‑reducing tax rewrite with complex rules; possible bipartisan appeal but difficult without offsets and broad agreement.
How solid the drafting looks.
Progressives emphasize distributional costs and revenue loss concerns
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize distributional costs and revenue loss concerns
Views the inflation-indexing concept as economically reasonable but worries it functions largely as a tax cut for wealthy investors.
Concern focuses on revenue loss, distributional fairness, and potential avoidance despite some anti‑abuse rules.
Sees indexing as a principled correction to taxing nominal gains, but is cautious about fiscal cost and administrative complexity.
Would favor the policy if paired with clear rules and offsets or sunset provisions.
Generally favorable: treats inflationary gains fairly and lowers effective capital gains taxation for long-term investors, which aligns with supply-side and investment-friendly tax preferences.
Concerned only about unnecessary complexity or limits that blunt benefits.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Substantive, revenue‑reducing tax rewrite with complex rules; possible bipartisan appeal but difficult without offsets and broad agreement.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize distributional costs and revenue loss concerns
Substantive, revenue‑reducing tax rewrite with complex rules; possible bipartisan appeal but difficult without offsets and broad agreement.
Pro readers get the full perspective split, passage barriers, legislative design review, stakeholder impact map, and lens-based policy tradeoff analysis for Capital Gains Inflation Relief Act of 2025.
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.