Capital Gains Inflation Relief Act of 2025

# Capital Gains Inflation Relief Act of 2025 - Summary **What the Bill Would Do:** This bill would adjust how capital gains taxes are calculated to account for inflation. Currently, when someone sells an asset (like stock or property) for a profit, they pay taxes on the entire gain. Under this proposal, the taxable gain would be reduced by an amount reflecting inflation that occurred while they owned the asset. For example, if someone bought stock for $100,000 and sold it for $150,000, part of that $50,000 gain would be considered inflation rather than actual profit, reducing the taxable amount. **Who It Affects and Key Provisions:** The bill primarily benefits investors and property owners—wealthier Americans tend to have larger capital gains.

It would apply to long-term capital gains (assets held over one year). Supporters argue this prevents "inflation-induced" tax increases on investment returns, while critics contend it would reduce government tax revenue and provide larger benefits to higher earners. **Current Status:** As of now, the bill is in committee and has not yet been voted on by the full Senate. It was introduced by Senator Ted Cruz (R-TX) in the 119th Congress.