The Trump Administration's proposed capital gains tax cut could add nearly $1 trillion to the national debt within the decade, think tank warns.

The article focuses on proposed executive action to index capital gains taxes to inflation, advocated by Republican lawmakers including Senators Ted Cruz and Tim Scott, which would reduce taxable capital gains by adjusting asset cost basis for inflation. Fiscal watchdogs like the Committee for a Responsible Federal Budget (CRFB) warn this policy could increase the national debt by $170 to $950 billion by 2035, disproportionately benefiting wealthy investors who own the majority of stocks, while providing no tax relief to lower-income groups. Critics also highlight that indexing gains without adjusting liabilities could create tax advantages for borrowers and negatively impact homeowners who currently benefit from capital gains exemptions. The debate occurs amid concerns over rising national debt, high interest expenses, and recent Supreme Court rulings reducing tariff-generated revenue. [Extracted from the article]