We’ve been the chief cheerleaders for cutting the capital gains tax via inflation indexing, especially for housing, as a way to unlock long-held assets and make them available for their best and highest use.  Senator Ted Cruz is urging Trump to do it via executive order, and that’s worth a try. but it would be better and more permanent if it started in Congress.

As our economic policy council member Judy Shelton reminds us: “The inflation tax is the cruelest tax.  The government shouldn’t be rewarded for devaluing the currency.”

Which raises a question – can any version of a capital gains tax attract bipartisan support in the current Congress?  How about doubling the long-stagnant tax exclusion for the sale of a primary residence and indexing it for inflation going forward?  That’s the proposal from 40 leading conservative groups including Unleash Prosperity Now:

Here’s the best part.  The bill led by Democrat Jimmy Panetta of California in the House and Republican John Cornyn in the Senate, already has 66 Democratic and 47 Republican cosponsors.

Anyone in favor of tax fairness and pro-growth policies should support indexing. This should be an easy one to get to President Trump’s desk.