Senator Ted Cruz’s Bill to Remove the Inflation Tax from Capital Gains Addresses a Symptom but Not the Cause
Washington, DC (April 13, 2018) – U.S. Senator Ted Cruz (R-Texas) has just announced he will introduce a bill to end taxes on capital "gains" that are simply a result of inflation.
Cruz’s inflation-indexing bill seeks to "expand economic growth and encourage more investment into the economy, helping create more opportunities for hardworking Americans."
"If you invest a thousand dollars, and then ten years later you sell whatever you have invested in for two thousand dollars, right now, you are taxed on that full gain, ignoring inflation, and ignoring the fact that inflation has eaten away a big chunk of that gain," Sen. Cruz said.
The Sound Money Defense League lauded the measure for acknowledging the problem created by the official policy of devaluing the purchasing power of the Federal Reserve Note "dollar" and for taking a reasonable first step to addressing it.
"Because of inflation, much of what is taxed as capital gains is not a real gain, but rather a nominal gain created by the Federal Reserve System through its policy of serial devaluation," said Jp Cortez, Policy Director at the Sound Money Defense League.
"We praise Senator Cruz for advancing a bill that addresses a symptom of Federal Reserve currency debasement," continued Cortez. "However, the fundamental solution is a return to sound money in America, i.e. gold and silver, as intended by our nation’s Founding Fathers.
"Until we strip central bankers of their abusive power to create money out of thin air, our nation’s investors, savers, pensioners, and wage-earners will be robbed of their assets through the insidious inflation tax."