Ted Cruz, Tim Scott asking Treasury to approve $200B tax cut without congressional approval
Cruz joined Tim Scott in asking Treasury to reduce capital-gains taxes by adjusting cost bases for inflation.

SOURCE CHECK
TAP FOR WHYCredibility rates Yahoo News, which republished this story. The other scores rate the article itself.
Yahoo News is an established news distributor, and the article identifies Ashleigh Fields and points to The Hill’s reporting. The text does not establish the publisher’s corrections practices, so the score reflects established national-news standards without assuming a specific corrections record.
- Source type — Recorded as national news; Yahoo News is an established news publisher and distributor.
- Author attribution — The article names Ashleigh Fields and identifies The Hill as the outlet that first reported the development.
- Transparency — The text attributes key claims to a senators’ letter, a budget-model forecast, and named experts.
- Correction history — No corrections policy or correction history is established in the article text.
The report gives the senators’ rationale alongside a revenue estimate, distributional impact, legal concerns, and a named expert’s criticism. It includes several specific sources but limited detail on the legal dispute and no response from Treasury.
HOW WE SCORE ↗The article presents the senators’ claimed economic and housing benefits alongside concerns about revenue loss, distributional effects, and legal authority. Treasury’s position and fuller legal analysis are absent.
- Counterarguments presented — The article includes a revenue estimate, the share projected to benefit the top 1 percent, and legal and tax-policy objections.
- Source diversity — The senators’ letter is set against views from a professor, a think-tank fellow, and a budget-model forecast.
- Omitted context — Treasury has not responded in the account, and the legal dispute is summarized rather than developed.
The report uses largely neutral language and presents the senators’ rationale alongside potential legal and distributional objections. Its framing does not clearly favor either side.
- Language tone — The proposal and its possible effects are described in restrained, descriptive terms.
- Source selection — The report includes the senators’ claims, a professor’s criticism, a think-tank fellow’s legal assessment, and a cited forecast.
- Framing — The headline and opening focus on the request and its scale without an explicit approving or condemning verdict.
Republished with credit
Republished from The Hill, with credit to the original publisher.
471 stories · 77.7–78.1 · updated Oct 15, 2026
This is The Hill's own score, and this article is credited to The Hill. The host score in the Source Check is Yahoo News's.
Sens. Ted Cruz and Tim Scott asked Treasury to reduce capital-gains taxes by adjusting asset cost bases for inflation, without prior congressional approval. The proposal could face legal challenges and, according to a cited forecast, would disproportionately benefit high-income households.
Cruz and Scott asked the Treasury Department to adjust the inflation basis used to calculate capital gains, saying the change would encourage investment and help address housing-market instability. The article says the proposal would cut taxes by $200 billion and could face legal challenges because a 1992 Justice Department opinion said congressional approval would be required for such tax-policy changes.
A cited 2018 Penn Wharton Budget Model forecast estimated that indexing capital gains to inflation would reduce federal revenue by $102 billion over a decade, with 86 percent of the benefits going to the top 1 percent. Harvard professor Jason Furman said the proposal would need other inflation adjustments, while the senators argued it could encourage homeowners to sell and increase housing supply. Treasury Secretary Scott Bessent’s response was unclear.
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SWIPE →Texas senator asking Treasury to adjust the inflation basis for capital gains
South Carolina senator asking Treasury to adjust the inflation basis for capital gains
Scott's version of this story ↗President whose economic agenda is mentioned in connection with the proposal
Treasury Secretary and recipient of the senators’ letter
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