The Left loves to talk about “tax fairness,” so we can’t imagine even Bernie Sanders being against this tax cut:

The exemption from capital gains tax on the sale of a home was set at $250,000 for an individual and $500k for a couple almost 30 years ago. Unlike most other tax code provisions that protect taxpayers from paying higher taxes due to inflation, this exemption level has never been adjusted for inflation. So as the charts below show, if these levels had been indexed for inflation, the exempt amounts would be $500,000 for singles and $1 million for couples.

Homeowners get screwed.  Many are paying a hefty sales tax on phantom “gains” that are mostly due to inflation. This inflation tax  also deters  older Americans from selling their homes. Better to die in the house and avoid the tax thanks to the step-up in basis at death.

Any budget/reconciliation bill that passes this Fall should at the very least fix this injustice and bad economics. (Click on the images to view a larger version)

Tax Exemption on a Home for A Single Homeowner

Tax Exemption on a Home for A Married Homeowner