Capital Gains Inflation Relief Act of 2025
Key claim: HR1857, the Capital Gains Inflation Relief Act of 2025, proposes indexing capital gains to inflation for tax purposes and has been referred to the House Committee on Ways and Means.
Abstract
(HR1857 · 119th Congress) Latest action (2025-03-05): Referred to the House Committee on Ways and Means.
Why this matters
Inflation indexing of capital gains would systematically reduce tax liability for holders of long-appreciated assets by excluding purely inflationary gains from the taxable base, shifting the effective tax burden away from long-term investors and reducing federal revenue. The introduction of a House companion (HR1857) alongside the Senate’s S798 signals bicameral interest, though the proposal remains at the referral stage with no enacted mechanism.