Capital Gains Inflation Relief Act of 2025
Key claim: The Capital Gains Inflation Relief Act of 2025 (S798) proposes to index capital gains to inflation for tax purposes, reducing the taxable gain on asset sales.
Abstract
(S798 · 119th Congress) Latest action (2025-02-27): Read twice and referred to the Committee on Finance.
Why this matters
Indexing capital gains to inflation is a long-running policy debate that would systematically reduce federal tax on asset sales, disproportionately benefiting long-term holders of appreciated stocks, real estate, and business interests while reducing federal revenue. Tracking S798 alongside asset-class-specific capital gains proposals (housing §121, PTP qualifying income) helps distinguish broad-based basis reform from targeted incentives. Neutral framing: proponents cite fairness in taxing only real gains; opponents cite revenue loss and distributional concentration.