More Than 40 Years Later—1040 Capital Losses are Still Capped at $3000 (Politically, Why?)

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The Politicus
Dec 30, 2020 04:52 PM 0 Answers
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A couple of days ago, I posted this question on the LAW stack exchange:

https://law.stackexchange.com/questions/59618/when-did-u-s-tax-code-limit-the-personal-capital-loss-deduction-to-3000

From a answer to the question, I learned that the $3000 figure became so in 1978.

Originally, my question was two parts: (1) When was the $3000 limit first imposed, and (2) the rationale behind why it hasn't been increased in so long a period of time.

The question became ``hot'', was then closed, and then reopened today in a modified form---some thinking that the second part of my query was better suited here.

So, bearing in mind that in any given tax year, the IRS allows capital losses to offset capital gains dollar for dollar, with any excess loss deductible from taxable income up to $3000. This apparently has been the case for over forty years with no increase in the allowable deduction since 1978---

MY QUESTION IS THIS: Have any political attempts been made to increase the $3000 amount to a more equitable figure? If so, can someone provide some information as to the attempts made and reasons for the failures? Or, has no political party seen fit to try and raise this figure in over forty years? Thank you.

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