Most capital gains are paid by wealthier Americans, who disproportionately hold large portfolios of investments. Conservatives have long sought to cut capital gains taxes, arguing that it would encourage investors to sell stock and move their money toward new investments, helping more companies grow. The idea has also been promoted widely by Grover Norquist, founder of Americans for Tax Reform and a leading conservative voice on tax cuts. There’s a big robust debate going on within the Treasury Department about whether or not to do this. It recently published an analysis of what indexing capital gains to inflation might mean, and it found that the tax savings could be substantial.

Source: Washington Post July 31, 2018 00:22 UTC