Let People Prosper

Let People Prosper

Stop Taxing Inflation: Trump-Congress Should Index Capital Gains for Inflation

Inflation shouldn’t be a taxable event. It’s time for Congress—and Trump—to end the hidden tax dragging down investment, savings, and growth.

Vance Ginn, Ph.D.'s avatar
Vance Ginn, Ph.D.
Jul 30, 2025
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Hello Friends!

What if the government taxed you on money you never really made?

That’s precisely what happens every time inflation distorts capital gains. Investors, retirees, farmers, and entrepreneurs are forced to pay taxes on phantom profits—gains that exist only on paper because of rising prices, not real growth.

It’s a fundamentally broken system. And now—with Trump’s “One Big Beautiful Bill” already shaking up the tax code—there’s a golden opportunity to fix it.

Indexing capital gains to inflation would stop the government from taxing unrealized, inflation-driven value increases and bring real fairness, efficiency, and growth to the tax code. It’s pro-growth. It’s pro-investment. And it’s pro-prosperity.

Here's why this fix is long overdue:

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