GOP Sens. Ted Cruz and Tim Scott requested the Treasury Department approve a $200 billion tax cut without congressional authorization. The proposal aims to adjust capital gains taxes for inflation, arguing it would unlock capital, boost investment, and create jobs nationwide.

The senators claim the "inflation tax" unfairly penalizes savers, though a 2018 Penn Wharton study found indexing capital gains would reduce government revenue by $102 billion over a decade, with 86% of benefits going to the top 1%. Legal experts question whether Treasury can implement such capital gains tax changes without congressional approval.

The proposal could increase housing supply by encouraging property owners to downsize, addressing market instability where many Americans avoid selling homes to avoid substantial capital gains taxes. This approach aligns with President Trump's economic agenda, particularly his focus on the housing market after mortgage rates recently fell below 6%.