Sen. Cruz Announces Bill to End Capital Gains Tax on Inflation in Americans for Tax Reform Press Conference
Urges Congress to make individual tax cuts permanent
WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) today announced in a press conference with Grover Norquist and Americans for Tax Reform (ATR) his intention to introduce a bill to end capital gains tax on inflation, which will expand economic growth and encourage more investment into the economy, helping create more opportunities for hardworking Americans. He also argued that on tax reform, there is much more Congress can do on behalf of the American people, including passing his bill to make the individual tax cuts permanent.
Watch his full remarks here. Excerpts are below:
Sen. Cruz explained how his bill will encourage more investment into businesses and promote economic growth:
“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.
However, this bill would tax based on true economic gains, versus taxing inflation.
“It is a pro-growth and pro-investment policy decision,” Sen. Cruz said. “It encourages people to invest more capital into businesses, and when you’re investing more capital in businesses it means you’re hiring more people, it means you’re buying more equipment, it means you’re raising wages, and that you’re driving economic growth. That is yet another example of what we need to be delivering real results. […] We accomplished a great deal in 2017, but we need to keep moving forward in 2018 and do more. When it comes to tax cuts and tax simplification there is a lot more we can and should be doing and I’m going to continue working to try and bring Republicans together to get that job done and to honor our promises.”
Sen. Cruz also highlighted how the 2017 tax cuts are resulting in higher wages and more opportunities for hardworking men and women in Texas and across the country:
“Let me thank ATR, for the great work Grover you do and what your team does making the case that when you cut people’s taxes it makes it easier for them to provide for their families,” Sen. Cruz said. “It makes it easier for them to provide for their kids, and it makes it easier for small businesses to grow. We’re seeing the economic benefits of this tax cut, even just a few months into it. Over four million Americans have already gotten pay raises or bonuses directly as a result of the tax cut. A couple of months ago I was on Southwest Airlines and a flight attendant walked up to me and hugged me and said, ‘Thanks for the raise!’ I said, ‘You’re welcome.’ That is impacting people all over and across this country, and it's impacting the state of Texas. As I talk to small business owners in Texas, there is an optimism that is incredible. You are seeing small business owners who are investing capital, who are expanding operations and opening new facilities, who are hiring new employees, who are raising wages, and the tax cut is a big, big, big part of that.”