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January 29, 2018

Dear President Trump and Secretary Mnuchin,

On behalf of the following organizations representing millions of American taxpayers, we congratulate your strong leadership in helping pass the Tax Cuts and Jobs Act of 2017.  It’s extremely pro-growth, delivers real tax cuts to working families, and signals to the private sector that Washington is not interested in smothering the economy through bigger government.

To follow up on that success, we write to strongly recommend that you use your executive power as president to end the tax injustice that is currently included in the computation of capital gains. Specifically, we request an Executive Order that would index capital gains to inflation so that taxpayers do not pay taxes on “phantom” gains.

For much the same reason that regular income tax brackets were indexed to inflation over 30 years ago, we believe that it is only a matter of fairness to do the same for capital gains.

For example, if someone saving for retirement purchased an S&P index fund for $1,000 in 2008 and dutifully held it for ten years, they could now sell it for $1934.  That’s a gain of $934.  Unfortunately, the full amount would be subject to taxation.  But $168 of that $934 isn’t a real gain at all.  It’s phantom income that was eaten away because of inflation.  And yet, taxpayers are currently forced to pay taxes on this nonexistent income.

Signing this Executive Order would have an immediate, pro-growth effect on the American economy. The real after-tax rate of return on all equities would immediately be priced higher – thereby increasing the wealth held by the millions of working and retired Americans who own 401ks, IRAs, mutual funds, and brokerage accounts. It would further encourage people to expand their savings, and incentivize people to start doing so. By preventing the money from unjustly going to the government, it could be re-invested in the economy, allowing businesses to expand, innovate, and create more jobs.

We endorsed this Executive Order in 2017, but we suspended our efforts so that it did not confuse the tax reform debate.  Now that tax cuts has been successfully passed into law, we believe now is the right time to continue your successful leadership in bringing about real economic growth through additional tax cuts.  This executive order would do just that.



David McIntosh


Club for Growth


Grover Norquist


Americans for Tax Reform


Dan Holler

Vice President

Heritage Action


Jason Pye

Vice President of Legislative Affairs



Phil Kerpen


American Commitment


Heather R. Higgins

President and CEO

Independent Women's Voice


Carrie Lukas


Independent Women's Forum


Olivia Grady

Senior Fellow

Center for Worker Freedom


James Martin


60 Plus Association


Palmer Schoening


Family Business Coalition


Karen Kerrigan

President & CEO

Small Business & Entrepreneurship Council


Sal J. Nuzzo

Vice President of Policy

The James Madison Institute


Brian Garst

Vice President

Center for Freedom and Prosperity


Jeffrey Mazzella


Center for Individual Freedom


Rick Manning


Americans for Limited Government


Pete Sepp


National Taxpayers Union


Larry Kudlow

Committee to Unleash Prosperity


David Williams


Taxpayers Protection Alliance


Chrissy Harbin

Vice President of External Affairs

Americans for Prosperity


Nathan Nascimento

Executive Vice President

Freedom Partners Chamber of Commerce


Daniel Garza


The LIBRE Initiative


David Barnes
Policy Director

Generation Opportunity


Daniel Schneider

Executive Director

The American Conservative Union


Amy Kremer

Co-Founder & Co-Chair

Women for Trump


Norm Singleton


Campaign for Liberty