Make America Even Greater: Index The Capital-Gains Tax

There are superb reasons why President Trump should re-embrace this highly promising reform.

House Ways & Means chairman Dan Rostenkowski (IL) introduced the Economic Growth Acceleration Act of 1992.  It cut some taxes and hiked others.  But, as Rostenkowski said, it “also promotes fairness by ending the taxation of illusory gains that are actually nothing more than inflation".

It's a very good capital-gains proposal helping middle-income Americans because it provides for non-taxability of inflationary gains.

What that means is if we have 100% inflation on a piece of property over a 10-year period, and the cost of that property [was] $100,000, and now it is $200,000, our tax will only be on $100,000, and its only fair because the inflationary gain, frankly, should not have been taxed at all.

That is not appreciation of your property.