Washington, D.C. – Today, Congressman Tom Emmer (MN-06) reintroduced the Retirement Inflation Protection Act (RIPA), which would protect retiring Americans from financial exploitation by paying inflation-induced capital gains taxes on their property.
The legislation would protect Americans 59 ½ years or older when they dispose of assets like a house, a business, or stocks. The measure would make it clear that taxes are not due on gains that are simply due to inflation. This will help to ensure that individuals are only paying capital gains on real increases in the value of an asset, allowing them to keep more of their own money for retirement.
“Retiring Americans should not be penalized for investments that are designed to financially secure their retirement. Regressive taxes like inflation hit low-income Americans the hardest,” said Emmer. “I am proud to reintroduce the Retirement Inflation Protection Act to bring relief, especially now, to those seeking a comfortable retirement after their many years of work. This legislation will create a safeguard for retiring Americans’ hard-earned assets, while enabling them to be more self-sufficient. I look forward to continuing work on securing everyone’s financial security, especially those headed into their golden years.”
“AMAC is proud to support this important legislation. Millions of seniors have been saving for retirement for decades, the Retirement Inflation Protection Act will ensure that they are not penalized for decades of inflation when it comes time to pay taxes. Increasing retirees’ buying power is good for the economy and good for seniors.” - Bob Carlstrom, President of AMAC Action the advocacy arm of the Association of Mature American Citizens
"No one should have to pay taxes on inflationary capital gains. Congressman Emmer’s bill should be applauded for protecting American seniors from the inflation tax on their life savings,” said Grover Norquist, President of Americans for Tax Reform.
Read the full text of the Retirement Inflation Protection Act here. Representative Emmer has taken several steps to support aging Minnesotans. Read more about his work here.