INTRODUCTION OF THE CAPITAL GAINS TAX SIMPLIFICATION ACT OF 1998 - Proposed simplification for capital gains taxes

Sep 19, 2026

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House remarks introduce the “Capital Gains Tax Simplification Act of 1998” to simplify how individuals compute capital gains taxes. The proposal replaces the complex Schedule D process with a single, easily understood rule that defines a 40% deduction from gross income for anet capital gain. Speakers argue current law and the confusing capital gains tax rate structure create long filing times and high chances of errors, and they advocate revenue-neutral simplification.

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INTRODUCTION OF THE CAPITAL GAINS TAX SIMPLIFICATION ACT OF 1998

Background on Schedule D complexity

Proposed rule and expected benefits

Current-law rate structure and future burdens

April 1, 1998 CONGRESSIONAL RECORD—HOUSE H2039 The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Minnesota (Mr. RAMSTAD) is recognized for 5 minutes. (Mr. RAMSTAD addressed the House. His remarks will appear herafter in the Extensions of Remarks.) f The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Pennsylvania (Mr. COYNE) is recognized for 5 minutes. (Mr. COYNE addressed the House. His remarks will appear hereafter in the Extensions of Remarks.) f INTRODUCTION OF THE CAPITAL GAINS TAX SIMPLIFICATION ACT OF 1998 Mr. COYNE. Mr. Speaker, I rise today to introduce the ‘‘Capital Gains Tax Simplification Act of 1998.’’ This legislation would simplify the computation of capital gains taxes for all individual taxpayers. The bill would also provide modest capital gains tax reductions for millions of Americans. I am sure that many of you have received complaints from a number of your constituents about the overly complex capital gains form—Schedule D—that they have to fill out as part of their 1997 Federal income tax returns. Their complaints are justified. Schedule D is long and complex—and it is very easy to make a mistake in filling out this form. Moreover, if nothing is done to fix this problem, Schedule D will get even more complex and burdensome in the coming years. The Capital Gains Tax Simplification Act of 1998 would solve the capital gains complexity problem once and for all. The capital gains treatment provided in the Capital Gains Tax Simplification Act of 1998 is so simple that the substance of the bill can be stated in one short, easily understandable sentence: ‘‘If for any taxable year a taxpayer other than a corporation has anet capital gain, 40 percent of such gain shall be a deduction from gross income.’’ In contrast, the Technical Corrections Act that passed the House last year contained 12 pages of detailed statutory language to describe the current complicated scheme for taxation of capital gains. The time is long overdue for Congress to begin simplifying our tax laws. The capital gains provisions are a good place to start. The current capital gains schedule and the underlying rules for taxation of capital gains are unnecessarily complex. Regardless of one’s views about capital gains taxes, I think that most of us would agree that a revenue-neutral simplification of the capital gains tax provisions is much-needed. Current law imposes a significant burden on taxpayers who have capital gains. The IRS estimates that a typical taxpayer with a capital gain will spend 5 hours and 20 minutes filling out his or her capital gains tax form. This is two hours more than in 1994. Moreover, the chances of making an effort in filing out this complicated, 54-line form are fairly high. As a member of the National Commission on Restructuring the Internal Revenue Service, I supported the Commission’s recommendation to pursue simplification at every possible opportunity. As the Ranking Member on the Ways and Means Oversight Subcommittee, I am well aware of the need for tax simplification. We need to make the tax code less complex—and less burdensome—for the American taxpayer. The Capital Gains Tax Simplification Act of 1998 would go a long way toward meeting that goal. This bill embodies simplification in the clearest and strongest sense of the word. The bill would replace a lengthy, complex provision with a simple, equitable solution. It would shorten and simplify the tax code, and—more importantly—it would shorten and simplify the process that millions of taxpayers must go through when filing out their annual income tax returns. Now is the time to act, not next year or the next. Last year, in the Housepassed IRS restructuring bill (H.R. 2676), the House and the Ways and Means Committee supported the IRS Restructuring Commission’s view that the tax laws should be simplified wherever, and however, possible. My bill would do exactly that. Th

FAQs

What is the Capital Gains Tax Simplification Act of 1998 intended to do?

It is intended to simplify the computation of capital gains taxes for individual taxpayers by reducing reliance on complex filing steps.

How would the proposed act change the current capital gains calculation?

It would replace the lengthy Schedule D process with a simplified rule: for a taxable year, if an individual has anet capital gain, 40% of that gain would be deducted from gross income.

Why do the remarks say Schedule D is a problem for taxpayers?

They describe Schedule D as long and complex, easy to make mistakes on, and associated with a significant time burden for taxpayers when filing their federal income tax returns.

Sep 19, 2026

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