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Capitol Hill Push to Change Taxes on Capital Gains

Naomi Jagoda relies on the Penn Wharton Budget Model’s analysis of the push on Capitol Hill to change tax law to adjust capital gains for inflation in Senate Dems to Mnuchin: Don't index capital gains to inflation.  The change would reduce taxes for those with capital gains. Jagoda applies PWBM’s analysis of indexing capital gains to inflation with the PWBM tax microsimulation model and PWBM’s blog on Sen. Ted Cruz’ proposal to index capital gains. She writes “… the Penn-Wharton Budget Model estimated that indexing capital gains would cost about $100 billion over 10 years and would largely benefit those in the top 1 percent of income.”