Austin News

U.S. Senator Ted Cruz has introduced the Capital Gains Inflation Relief Act of 2025, a bill aimed at adjusting the cost basis of capital assets for inflation. This legislative proposal seeks to align the treatment of capital gains with other areas of the tax code.

Senator Cruz commented on the introduction, stating, "The inflation created by the Biden-Harris administration and Democrat lawmakers continues to erode Americans’ savings, including by turning gains into an unfair tax burden. The Capital Gains Inflation Relief Act of 2025 addresses this issue by indexing the cost basis of capital assets to inflation, ensuring fair treatment for every investment. This measure will boost savings, spur investment, and create jobs nationwide."

The bill has received support from Senator Thom Tillis who remarked, “This commonsense legislation updates our tax code to ensure that hardworking Americans are not unfairly penalized for inflation. This bill brings much-needed fairness to the tax system and helps families keep more of what they earn.”

Senator Tillis is a cosponsor of this legislation.

Previously introduced in 2018 and 2021 by Senator Cruz, this act proposes indexing certain assets to inflation when determining gain or loss. It aims to provide equitable treatment similar to individual income tax brackets and other sections within federal taxation. Notably, digital assets have been included in this updated version.

In a related context back in 2021, Senator Cruz expressed concerns through an op-ed about potential economic impacts due to spending policies under the Biden-Harris administration.