GOP Senators Advocate For $200 Billion Tax Cut Without Congressional Approval Ahead Of Midterms: Report

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Bessent, pushing for inflation indexation to reduce the capital gains tax burden on Americans selling assets such as stocks, businesses, and homes. Cruz and Scott argued that the move would encourage savings, stimulate investment, and create jobs across the country, The Washington Post reported on Tuesday.The proposal is also being framed as a possible remedy for the country's housing market challenges. The senators argued that indexing the capital gains for inflation would incentivize long-term homeowners to downsize and sell, increasing the supply of family homes and easing market constraints. The proposed change is estimated to cost around $200 billion, according to Cruz’s officeDon't Miss:This Energy Storage Company Already Has $185M in Contracts—Shares Are Still AvailableThe ‘ChatGPT of Marketing' Just Opened a $0.85/Share Round — 10,000+ Investors Are Already InAccording to the senators, the administration has the authority to implement the change without congressional approval. However, a 1992 Justice Department Office of Legal Counsel opinion found that the Treasury cannot make such a change on its own without involving the congress. Any attempt to do so through executive action would likely trigger immediate legal challenges.The Treasury Department did not immediately respond to Benzinga’s request for comment.Harvard professor Jason Furman stated that for Cruz and Scott's proposal to work, the tax cut would need to trigger other adjustments based on inflation. Calling it a “not good” tax policy, he argued on X that interest deductions should apply only to real interest, and not the portion driven by inflation.Trending: Before the IPO: How One Company Quietly Locked Up 500+ Iconic Character RightsFurman’s post was a response to Kyle Pomerleau, a senior fellow at the American Enterprise Institute, who claimed the measure is “illegal.”I would add:3. Not good tax policy if you don't adjust other parts of the system for inflation, most importantly reducing people's interest deduction to only real interest–no longer allowing deductions for the inflation component of interest. https://t.co/8N6Pd5D5x7Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,740.02 -90.69 (-1.33%)Dow 3047,501.55 -453.19 (-0.95%)Nasdaq22,387.68 -361.31 (-1.59%)Russell 20002,525.30 -60.27 (-2.33%)VIX29.49 +5.74 (+24.17%)Gold5,181.30 +102.60 (+2.02%)Trending tickersBTC-USD Bitcoin USD 68,236.60 -2,745.57 (-3.87%)VRT Vertiv Holdings Co 241.78 -7.97 (-3.19%)LITE Lumentum Holdings Inc. 558.44 -92.38 (-14.19%)BE Bloom Energy Corporation 135.19 -24.80 (-15.50%)PRSO Peraso Inc. 2.0400 +1.2290 (+151.54%)PortfolioSign in to access your portfolioSign inTop gainersDAWN Day One Biopharmaceuticals, Inc. 21.20 +8.42 (+65.88%)IOT Samsara Inc. 35.36 +5.78 (+19.54%)MRVL Marvell Technology, Inc. 89.57 +13.89 (+18.35%)EMAT Evolution Metals & Technologies Corp. 9.76 +1.25 (+14.69%)IOVA Iovance Biotherapeutics, Inc. 5.13 +0.55 (+12.01%)Top losersINGM Ingram Micro Holding Corporation 22.06 -4.30 (-16.31%)BE Bloom Energy Corporation 135.19 -24.80 (-15.50%)GAP The Gap, Inc. 23.28 -3.92 (-14.41%)LITE Lumentum Holdings Inc. 558.44 -92.38 (-14.19%)JEF Jefferies Financial Group Inc. 38.29 -5.99 (-13.53%)Most activeNVDA NVIDIA Corporation 177.82 -5.52 (-3.01%)ONDS Ondas Inc. 9.83 -0.63 (-6.05%)AAL American Airlines Group Inc. 11.18 -0.61 (-5.17%)MRVL Marvell Technology, Inc. 89.57 +13.89 (+18.35%)BBD Banco Bradesco S.A. 3.6800 -0.0600 (-1.60%)Top economic eventsEarnings eventsMy earnings eventsEarnings events