GOP Congressman Burchett proposes eliminating capital gains tax on home sales

Tennessee GOP Rep. Tim Burchett is proposing that Congress eliminate the capital gains tax on home sales, arguing the money the IRS takes from sellers is "redundant" and that allowing them to keep and reinvest it would help stimulate the U.S. economy. 

"I'm going to prepare some legislation to take away the capital gains tax on a piece of property, and you know, it's just redundant," he said on a recent John Solomon Reports podcast.

"When you tax people less, they don't stick it in a doggone pillow case under their bed. They reinvest it. They put it in a bank, and that bank loans it out to other people, or they buy something, buy an automobile, and under Trump's plan, American automobiles, the reduction is there."

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Burchett said Americans should decide what they do with their money rather than a bunch of "un-elected bureaucrats" and members of Congress in Washington.

Burchett said he doubts Congress would pass his bill to eliminate the tax, but he plans to propose it anyway.

"I don't think it'll happen, because we don't have the guts to do it," he said. "I probably won't even get a hearing in the committee."

According to Bankrate, currently the "long-term capital gains tax rates are 15%, 20% and 28% (for certain special asset types), depending on your income."

Eligible homeowners are exempt from capital gains tax on profits from the sale of their primary residences. The exemption, if a taxpayer qualifies, is $250,000 in profit, or $500,000 if married and filing jointly, also according to Bankrate.