Ted Cruz

In the midst of global warfare and fallout from the Epstein files, two Republican Senators are sending a letter to Treasury Secretary Scott Bessent today asking him for a $200 billion reduction on capital gains taxes. The move, which completely circumvents the U.S. Congress, would lower the tax burden for citizens selling stocks, businesses, homes and other assets.

Senators Ted Cruz (R-TX) and Tim Scott (R-SC) are alleging the Trump executive branch doesn’t need Congressional approval to make the tax code change. Cruz and Scott have said the cuts would boost the economy by spurring savings, investment and job creation.

Critics argue that the tax cuts would overwhelmingly benefit the wealthy. The Penn Wharton Budget Model parsed numbers during Trump’s first presidency showing that the top one percent of income earners would receive roughly 86 percent of the benefits from indexing capital gains to inflation. The bottom 80 percent of earners would receive just one percent.

Cruz’s Capital Gains Inflation Act of 2025, which stalled in the Senate Finance Committee last year, unsuccessfully attempted to amend the tax code. He previously co-sponsored the House Capital Gains Inflation Relief Act in 2021, which also stalled in the Senate Finance Committee. In 2018 he proposed the Capital Gains Inflation Relief Act of 2018, which also stalled in the Senate Finance Committee.

Penn Wharton released an analysis after the 2018 bill was introduced. “Last month, Penn Wharton Budget Model (PWBM) analyzed a similar policy, finding that indexing capital gains to inflation would cost $102 billion over the next 10 years and benefit primarily high-income households.”

Since the first three attempts to pass the tax cuts didn’t even make it out of committee, Cruz felt bypassing Congress altogether would be the most effective approach. The move follows what is becoming a common practice in the Trump Administration – cutting out the Legislative branch of government.