Trump Can Help Middle Class By Ending the Inflation Tax on Capital Gains

Three-fourths of households with a capital gains filing make less than $200k

President Trump can help middle class households by using his rulemaking authority to end the inflation tax on capital gains.

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.

Inflation is created by the government and then taxed by the government. It is time to end this double-dipping.

Americans are currently stuck paying capital gains taxes on inflation.

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

SEE ALSO:  

30 Conservative Groups Urge Trump to Index Capital Gains

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