WASHINGTON, D.C. – U.S. Senator Ted Cruz (R-Texas) introduced the Capital Gains Inflation Relief Act of 2025. The legislation ensures an individual’s cost basis in a capital asset receives the same fair and equitable treatment as in other areas of the tax code by indexing the basis for inflation.
Upon introduction, Sen. Cruz said, “The inflation created by the Biden-Harris administration and Democrat lawmakers continues to erode Americans’ savings, including by turning gains into an unfair tax burden. The Capital Gains Inflation Relief Act of 2025 addresses this issue by indexing the cost basis of capital assets to inflation, ensuring fair treatment for every investment. This measure will boost savings, spur investment, and create jobs nationwide.”
Sen. Tillis said, “This commonsense legislation updates our tax code to ensure that hardworking Americans are not unfairly penalized for inflation. This bill brings much-needed fairness to the tax system and helps families keep more of what they earn.”
The legislation was cosponsored by Sen. Thom Tillis (R-N.C.).
Read the bill text here.
BACKGROUND
Sen. Cruz previously introduced this legislation in 2021 and 2018.
The Capital Gains Inflation Relief Act indexes certain assets to inflation for the purpose of determining a gain or loss which ensures the capital gains tax is treated equitably to other sections of the federal tax code, such as individual income tax brackets, the standard deduction, and income thresholds of certain tax credits. Sen. Cruz’s previously introduced legislation has been updated to include digital assets.
In 2021, Sen. Cruz published an op-ed in The Dallas Morning News detailing how the Biden-Harris administration’s massive spending spree could result in an inflation crisis and destroy the wealth of hard-working Americans.
