Cruz Presses Treasury for $200B Capital Gains Cut Without Lawmakers
Republican Sens. Ted Cruz and Tim Scott are pushing for a $200 billion tax cut without going through Congress and it’s raising legal and political questions.
According to The Washington Post, the senators asked the Treasury Department to “index” capital gains for inflation, a move that would reduce taxes owed when investments are sold. They argue Treasury has the authority to act administratively.
But a 1992 Justice Department opinion concluded the department does not have that power, setting up a potential legal fight if officials move forward.
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The timing is notable. The proposal comes as Republicans work to improve voter perceptions of the economy ahead of the 2026 midterm elections.
Critics argue the policy would primarily benefit wealthy Americans. Past Penn Wharton modeling found similar indexing proposals would send the vast majority of tax savings to the top 1% of earners.
Whether Treasury acts — or whether courts intervene — could shape the GOP’s economic message heading into the midterms.
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