Sen. Cruz Introduces Legislation to Reduce Tax Burden on Middle Class
Washington, D.C. – U.S. Sen. Ted Cruz (R-Texas), Ranking Member of the Senate Commerce, Science, and Transportation Committee, today reintroduced the Capital Gains Inflation Relief Act, and legislation to make permanent the 2017 Tax Cuts and Jobs Act’s middle class tax cuts.
Sens. Bill Hagerty (R-Tenn.) and Mike Braun (R-Ind.) are co-sponsoring the Capital Gains Inflation Relief Act, and Sen. Braun is also co-sponsoring Sen. Cruz’s legislation to make tax cuts permanent.
About the bills, Sen. Cruz said:
“We should reform our tax code to make it simple, fair, and easy enough to fit it on a post card. Short of that, we should be doing everything possible to reward wise investment, and support middle class families. These bills would take inflation into account, and support American taxpayers during these difficult economic times. They would spur growth in Texas and across the country, and would help families deal with the real problems they face. We should put partisan politics aside and pass this important legislation.”
The Capital Gains Inflation Relief Act would change the way taxpayers determine capital gain and the taxes due on such gain, by allowing taxpayers to use an inflation-adjusted cost basis. The bill would index certain assets to inflation for the purpose of determining a gain or loss. This would bring the capital gains tax in line with other sections of the U.S. tax code.
Read the bill here.
The legislation to make tax cuts permanent includes:
- A permanent extension of the lower rate for pass-through entities;
- A permanent extension of the increase in the standard deduction;
- A permanent increase and modification of the Child Tax Credit;
- A permanent increase in the limitation on charitable contributions;
- A permanent extension of changes to individual deductions, including SALT;
- A permanent increase in estate and gift tax exemption;
- A permanent increase in Alternative Minimum Tax (AMT) exemption.
- Read the bill here.
Throughout his time in the Senate, Sen. Cruz has fought for reforms to ensure that U.S. law and our tax code help Texans and Americans thrive:
- Sen. Cruz helped enact historic tax reform in 2017, which gave a tax cut to virtually every taxpayer in America. It reduced taxes on small businesses, farmers, ranchers, and job producers, which has helped bring jobs to Texas.
- In the wake of Hurricane Harvey’s devastation in 2017, Sen. Cruz visited with victims, volunteers, first responders, and local officials in every region affected by the storm and authored the federal law that provided crucial and immediate tax relief to storm survivors along the Gulf Coast.
- Sen. Cruz played a critical role in repealing Obamacare’s individual mandate in Congress’ historic tax reform bill.
- Sen. Cruz has fought for his Education Freedom Scholarships and Opportunity Act, which would create a federal tax credit for taxpayers who donate to scholarship organizations supporting post-secondary workforce education, including trade schools and apprenticeship programs, and K-12 education. This bill focuses on making quality schooling and workforce education more affordable than ever for all Americans.
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