A U.S. House of Representatives bill introduced today is the latest attempt in Congress to tamp down on capital gains tax for retirees.
Those taxes would be reduced by the rate of inflation — a concept that has been floated in the past but has failed to progress. Rep. Tom Emmer, R-Minn., reintroduced the bill, the Retirement Inflation Protection Act, after an identical measure died in committee last October.
The legislation would allow an inflation adjustment for stock or business property held by people 59 ½ or older who have held the assets for more than three years. The inflation adjustments would be made according to the Chained Consumer Price Index for All Urban Consumers.
“Currently, the tax system inadvertently penalizes our aging Americans for offloading these investments — the very investments that are designed to financially secure their retirement — because capital gains taxes are not indexed for inflation,” Emmer said in an announcement from his office.
The bill “would make it clear that taxes are not owed on gains that are simply the result of inflation,” the announcement stated.
Emmer has been active in legislation affecting the financial services industry. He has also introduced bills designed to curb litigation against mutual fund providers for allegedly charging excessive fees. Emmer has also shown much interest in regulations governing cryptocurrency, including how such assets are taxed and how brokerages can hold them.
The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.
RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.
UBS has a history of costly litigation stemming from the sale of volatile investment products.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
