Taxpayers older than 59 would be shielded from paying inflation-induced capital gains taxes on their assets to help provide them money for retirement under legislation introduced by U.S. Rep. Tom Emmer (R-MN) on Monday.
The Retirement Inflation Protection Act (RIPA) would stipulate that taxpayers older than 59 and a half years are only required to pay capital gains on real increases in the value of assets, such as on stocks or a business.
“During our discussions on tax reform, it is crucial we look at all taxes, but especially regressive taxes like inflation that hit low-income Americans and seniors the hardest,” Emmer said. “I am proud to introduce the Retirement Inflation Protection Act to bring relief to our nation’s seniors.”
The bill would protect those taxpayers from “the harmful effects of inflation,” Emmer added, while creating a safeguard for their assets and enabling them to be more self-sufficient.
“I look forward to continuing our efforts to reform our nation’s tax code, especially when it benefits those who need our help the most,” Emmer concluded.
Daniel Weber, the president and founder of the Association of Mature American Citizens said the bill is a “real-time solution to a real-life problem.”
“Seniors need the reassurance that the assets they’ve accumulated over decades of hard work won’t be raided by taxes as they begin their retirement,” Weber said. “As the cost of retiring continues to increase, RIPA offers seniors peace of mind that they can be financially secure in their golden years.”