Inflation Adjustment Would Offset Capital Losses, Provide Huge Relief

(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today urged members of the House of Representatives to support H.R. 1619, a bill to treat small investors with a greater degree of fairness under the tax code. 

“H.R. 1619, reported favorably by the Committee on Ways and Means last week, provides relief to the individual investor struggling to manage assets in this time of market instability by increasing the deduction of capital losses on taxpayer income,” CCAGW President Tom Schatz said.  

Since 1978, the amount of capital losses that are tax deductible have remained at the same rate, never adjusted for inflation.  Increasing the deduction from $3,000 a year up to $8,250 annually would merely index the amount to reflect the inflationary rate. 

“This is a fair, common sense adjustment for the investor,” Schatz continued.  “While Members of Congress are afforded the luxury of having their salaries automatically adjusted for inflation, taxpayers are in the position of having to wait – in this case three decades – for Congress to enact an inflation adjustment to offset capital losses.”   

“After 30 years, the time has come reconcile this inequity.  The 1970's were the time of bell-bottoms, platform shoes, and 8 track tapes,” Schatz also said.  “We are now living in the 21^st century; a time when most every home has a personal computer and record numbers of on-line investors are doing their own asset management.” 

“The American taxpayer deserves this small step towards parity,” Schatz concluded.  “Taxpayers who have incurred losses not offset by gains should be able deduct an amount reflective of the inflationary changes.” 

CCAGW urges members of Congress to approve H.R. 1619, and notes this bill will be among those considered for its annual Congressional Ratings.

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.