Washington, D.C. – Today, Congressman Tom Emmer (MN-06) reintroduced the Retirement Inflation Protection Act, which would protect retiring Americans from paying inflation-induced capital gains taxes on certain assets.
“Retiring is something Americans save and plan for, and a portion of those savings are often held in assets like a house. Currently, the tax system inadvertently penalizes our aging Americans for offloading these investments – the very investments that are designed to financially secure their retirement – because capital gains taxes are not indexed for inflation,” said Emmer.
Emmer continued, “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. Creating this safeguard for retiring Americans’ hard-earned assets will enable them to retire more comfortably. I look forward to continue working on policies that protect everyone’s financial security, especially those who are heading into retirement.”
Specifically, this bill would protect Americans who are at least 59 ½ years old when they sell an asset, like property or stocks, if they have held that asset for at least three years. The legislation would make it clear that taxes are not owed on gains that are simply the result of inflation. This will help to ensure that individuals are only taxed on real increases in the value of an asset, allowing them to keep more of their own money heading into retirement.
“AMAC is proud to once again 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, especially as we work to recover from the pandemic caused recession.” - Bob Carlstrom, President of AMAC Action the advocacy arm of the Association of Mature American Citizens (AMAC)
"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.