ATR President Grover Norquist appeared on Fox Business Network’s Kudlow to discuss ending the inflation tax on capital gains. Here is the full video:

Transcript:

Norquist: “The government creates inflation, the government shouldn’t profit by the inflation they create by raising taxes on people who own crypto, or the more than fifty percent of people who have houses, the more than sixty percent of Americans who have their life saving in stocks and bonds, or the millions of Americans with farms, small businesses, and land. Thirty million people pay capital gains taxes, three quarters of them earn less than $200,000 a year. This is something that affects every American community, every small business, every small town. Go straight down the middle of Main Street, and you see people who are damaged by the inflation tax.’

Kudlow: “That’s so important. That number 200,000 is important. Three quarters of the cap gains payers make less than $200,000, so that’s a middle class tax cut. And, the other point I make is, why should they, or anybody else for that matter have to pay the Biden inflation tax at all?”

Norquist: “It is wrong for the government to inflate the currency. It steals the life savings from people. It is doubly wrong to tax people on the inflation that the government creates. Ronald Reagan solved this problem for the personal income tax. He indexed tax brackets. Before Reagan, inflation would put you in a higher bracket. You could make no more real money, but you’d be paying real higher rates. We need to do the same thing for capital gains, and if we spend the next two months debating the morality of what the Democrats want which is to tax inflation versus the Trump position which is no then this election is over.”

Inflation is created by the government and then taxed by the government. Americans are currently stuck paying capital gains taxes on inflation. It is time to end this double-dipping.

IRS data shows that 74% of households with a capital gains filing make less than $200,000. That is, three in four households with a capital gains filing make less than $200,000.

As shown by official IRS data from the most recent available dataset, tax year 2022:

30,465,850 households had a capital gains filing

22,647,560 made less than $200k

=74% of households with a capital gains filing made less than $200k

Americans for Tax Reform and 30 other conservative groups recently sent Treasury Secretary Bessent a letter supporting Bessent’s ability to end the inflation tax. Senator Ted Cruz (R-Texas) and Senator Tim Scott (R-S.C.) are also urging an end to the inflation tax. Trump has noted he has the authority to do so: “It can be done directly by me.”

Data for all 50 states is below.

Alabama

287,180 households had a capital gains filing

223,950 made less than $200k

78% made less than $200k

Alaska

62,340 households had a capital gains filing

48,290 made less than $200k

77% made less than $200k

Arizona

615,160 households had a capital gains filing

473,720 made less than $200k

77% made less than $200k

Arkansas

183,700 households had a capital gains filing

146,920 made less than $200k

80% made less than $200k

California

3,852,470 households had a capital gains filing

1,616,510 made less than $200k

42% made less than $200k

Colorado

681,910 households had a capital gains filing

497,580 made less than $200k

73% made less than $200k

Connecticut

425,060 households had a capital gains filing

297,640 made less than $200k

70% made less than $200k

Delaware

96,130 households had a capital gains filing

74,530 made less than $200k

77% made less than $200k

District of Colombia

86,260 households had a capital gains filing

54,740 made less than $200k

63% made less than $200k

Florida

2,136,590 households had a capital gains filing

1,970,520 made less than $200k

92% made less than $200k

Georgia

770,390 households had a capital gains filing

562,110 made less than $200k

73% made less than $200k

Hawaii

140,360 households had a capital gains filing

113,010 made less than $200k

80% made less than $200k

Idaho

168,030 households had a capital gains filing

134,830 made less than $200k

80% made less than $200k

Illinois

1,261,490 households had a capital gains filing

940,230 made less than $200k

74% made less than $200k

Indiana

517,370 households had a capital gains filing

418,680 made less than $200k

80% made less than $200k

Iowa

311,450 households had a capital gains filing

255,820 made less than $200k

82% made less than $200k

Kansas

277,060 households had a capital gains filing

221,680 made less than $200k

80% made less than $200k

Kentucky

278,490 households had a capital gains filing

226,060 made less than $200k

81% made less than $200k

Louisiana

272,670 households had a capital gains filing

257,010 made less than $200k

94% made less than $200k

Maine

131,440 households had a capital gains filing

107,060 made less than $200k

81% made less than $200k

Maryland

596,180 households had a capital gains filing

422,030 made less than $200k

70% made less than $200k

Massachusetts

834,430 households had a capital gains filing

563,270 made less than $200k

67% made less than $200k

Michigan

894,250 households had a capital gains filing

722,750 made less than $200k

80% made less than $200k

Minnesota

638,140 households had a capital gains filing

495,240 made less than $200k

77% made less than $200k

Mississippi

131,790 households had a capital gains filing

106,240 made less than $200k

80% made less than $200k

Missouri

542,020 households had a capital gains filing

440,650 made less than $200k

81% made less than $200k

Montana

123,950 households had a capital gains filing

101,850 made less than $200k

82% made less than $200k

Nebraska

200,570 households had a capital gains filing

163,010 made less than $200k

81% made less than $200k

Nevada

252,110 households had a capital gains filing

193,250 made less than $200k

76% made less than $200k

New Hampshire

164,690 households had a capital gains filing

122,160 made less than $200k

74% made less than $200k

New Jersey

1,077,680 households had a capital gains filing

739,270 made less than $200k

68% made less than $200k

New Mexico

137,860 households had a capital gains filing

112,100 made less than $200k

81% made less than $200k

New York

2,015,460 households had a capital gains filing

1,482,840 made less than $200k

73% made less than $200k

North Carolina

896,280 households had a capital gains filing

673,700 made less than $200k

75% made less than $200k

North Dakota

79,460 households had a capital gains filing

62,510 made less than $200k

78% made less than $200k

Ohio

990,510 households had a capital gains filing

798,760 made less than $200k

80% made less than $200k

Oklahoma

248,820 households had a capital gains filing

198,630 made less than $200k

79% made less than $200k

Oregon

426,370 households had a capital gains filing

333,040 made less than $200k

78% made less than $200k

Pennsylvania

1,253,060 households had a capital gains filing

968,950 made less than $200k

77% made less than $200k

Rhode Island

102,240 households had a capital gains filing

79,020 made less than $200k

77% made less than $200k

South Carolina

409,750 households had a capital gains filing

320,220 made less than $200k

78% made less than $200k

South Dakota

99,690 households had a capital gains filing

82,140 made less than $200k

82% made less than $200k

Tennessee

496,020 households had a capital gains filing

377,430 made less than $200k

76% made less than $200k

Texas

2,152,520 households had a capital gains filing

1,513,910 made less than $200k

70% made less than $200k

Utah

262,870 households had a capital gains filing

199,880 made less than $200k

76% made less than $200k

Vermont

75,280 households had a capital gains filing

61,500 made less than $200k

81% made less than $200k

Virginia

877,490 households had a capital gains filing

620,120 made less than $200k

70% made less than $200k

Washington

894,690 households had a capital gains filing

613,060 made less than $200k

68% made less than $200k

West Virginia

92,040 households had a capital gains filing

77,060 made less than $200k

83% made less than $200k

Wisconsin

633,950 households had a capital gains filing

524,890 made less than $200k

82% made less than $200k

Wyoming

59,910 households had a capital gains filing

48,130 made less than $200k

80% made less than $200k

Trump on Capital Gains Indexing: “It can be done directly by me.”