A U.S. House of Representatives bill introduced today is the latest attempt in Congress to tamp down on capital gains tax for retirees.
Those taxes would be reduced by the rate of inflation — a concept that has been floated in the past but has failed to progress. Rep. Tom Emmer, R-Minn., reintroduced the bill, the Retirement Inflation Protection Act, after an identical measure died in committee last October.
The legislation would allow an inflation adjustment for stock or business property held by people 59 ½ or older who have held the assets for more than three years. The inflation adjustments would be made according to the Chained Consumer Price Index for All Urban Consumers.
“Currently, the tax system inadvertently penalizes our aging Americans for offloading these investments — the very investments that are designed to financially secure their retirement — because capital gains taxes are not indexed for inflation,” Emmer said in an announcement from his office.
The bill “would make it clear that taxes are not owed on gains that are simply the result of inflation,” the announcement stated.
Emmer has been active in legislation affecting the financial services industry. He has also introduced bills designed to curb litigation against mutual fund providers for allegedly charging excessive fees. Emmer has also shown much interest in regulations governing cryptocurrency, including how such assets are taxed and how brokerages can hold them.
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As our second lead editor, Cindy Hamilton covers health, fitness and other wellness topics. She is also instrumental in making sure the content on the site is clear and accurate for our readers. Cindy received a BA and an MA from NYU.