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flag Senators Cruz and Scott push Treasury to cut capital gains tax by indexing for inflation, citing legal authority, but experts question legality and fairness.

flag Senators Ted Cruz and Tim Scott are urging the Treasury Department to implement a $200 billion capital gains tax cut by indexing asset costs for inflation without congressional approval, arguing it would boost investment, job creation, and housing market liquidity. flag They claim the Treasury has legal authority to act unilaterally, though a 1992 Justice Department opinion and experts like Harvard’s Jason Furman dispute this, warning of legal challenges and disproportionate benefits to high-income earners. flag The move reflects Republican efforts to advance tax relief amid legislative gridlock, but its success depends on the Treasury’s interpretation of executive power and faces skepticism over fiscal impact and fairness.

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