A Republican bill with 7 Republican cosponsors · See all 7 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill is called the Capital Loss Inflation Fairness Act. It changes the Internal Revenue Code of 1986 regarding capital losses. Specifically, it increases the limit on capital losses for taxpayers other than corporations. It also sets up an inflation adjustment for these dollar amounts for taxable years beginning after 2026. The changes apply to losses in taxable years beginning after December 31, 2025.
Yes· 3 of 6
- Scored +6
Does this cut the tax on profits from selling investments?
The bill increases the capital loss deduction limit and indexes it to inflation, reducing tax burdens on capital losses.
- Scored +5
Would middle-income households be better off under this?
Middle-class taxpayers who experience investment losses can deduct a higher amount from their ordinary income.
- Scored +5
Would high-income households be better off under this?
Higher-income households with investment portfolios benefit from the expanded capital loss deduction.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 2(a) increases the capital loss limit to $14,250, or $7,125 for a married individual filing a separately. This is a positive outcome because it allows everyday people to deduct more of their investment losses against their other income.
-
Section 2(a) also adds an inflation adjustment for future years based on the cost-of-living adjustment. This is beneficial because it means the deduction limit will automatically adjust to keep up with inflation over time rather than staying stuck at a flat rate.
Potential Negative Impacts for People
- Based on the provided text, there are no specific negative consequences or burdens identified for individuals or groups of people.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would high-income households be better off under this? — Higher-income households with investment portfolios benefit from the expanded capital loss deduction. Would middle-income households be better off under this? — Middle-class taxpayers who experience investment losses can deduct a higher amount from their ordinary income. Would people with substantial wealth be better off under this? — Individuals with substantial wealth and capital investments benefit from the increased loss limitation. Would people in middle age be better off under this? — Middle-aged individuals who invest will benefit from the increased capital loss deduction limit. Would people over 65 be better off under this? — Seniors with investment portfolios will benefit from a higher capital loss deduction limit and inflation indexing.
- Economy And Finance
- Does this cut the tax on profits from selling investments? — The bill increases the capital loss deduction limit and indexes it to inflation, reducing tax burdens on capital losses.
- 10/5/2026
- 3 Cosponsors added.
- 10/1/2026
- Referred to the House Committee on Ways and Means.
- 4 Cosponsors added.
- Introduced in House
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Sheri BiggsRepublican · South Carolina
Michael CloudRepublican · Texas
Andy HarrisRepublican · Maryland
Thomas KeanRepublican · New Jersey
Thomas MassieRepublican · Kentucky
Richard McCormickRepublican · Georgia
Scott PerryRepublican · Pennsylvania