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President Donald Trump has announced that he is “seriously considering” cutting the capital gains tax.

President Trump should use his executive authority to index capital gains taxes to inflation, a tax cut that would benefit millions of middle income households. 

ATR looked at Internal Revenue Service data from 2017 (the most recent available data) to determine what percentage of middle class households had a capital gains filing:

  • 25,494,330 American households had a capital gains filing 
  • 13,730,710 (53%) made less than $100k 
  • 20,466,770 (80%) made less than $200k 
     

In Pennsylvania, more than one million households had a capital gains filing in 2017.  58 percent of those households made less than $100,000, and 83 percent made less than $200,000.

These results are just from one year. Imagine how many middle income households would be helped over the course of a decade by ending the inflation tax.

The breakdown for all 50 states is below. 

Alabama 
237,850 households had a capital gains filing
134,560 (57%) made less than $100k
198,770 (84%) made less than $200k 

Alaska
52,090 households had a capital gains filing 
26,910 (51%) made less than $100k 
43,130 (82%) made less than $200k

Arizona
493,700 households had a capital gains filing 
283,840 (57%) made less than $100k
412,790 (84%) made less than $200k

Arkansas
156,360 households had a capital gains filing 
95,290 (61%) made less than $100k
133,610 (85%) made less than $200k

California
3,164,570 households had a capital gains filing
1,483,910 (47%) made less than $100k
2,335,870 (74%) made less than $200k

Colorado 
557,710 households had a capital gains filing 
290,200 (52%) made less than $100k
446,340 (80%) made less than $200k

Connecticut
383,770 households had a capital gains filing
186,810 (49%) made less than $100k
290,480 (76%) made less than $200k

Delaware
79,320 households had a capital gains filing
43,240 (55%) made less than $100k
66,360 (84%) made less than $200k

Florida
1,671,930 households had a capital gains filing 
960,130 (57%) made less than $100k
1,359,950 (81%) made less than $200k

Georgia
612,040 households had a capital gains filing
312,530 (51%) made less than $100k
479,210 (78%) made less than $200k

Hawaii
118,500 households had a capital gains filing
67,270 (57%) made less than $100k
101,300 (85%) made less than $200k

Idaho 
130,670 households had a capital gains filing
77,770 (60%) made less than $100k
108,880 (83%) made less than $200k

Illinois
1,124,230 households had a capital gains filing
593,720 (53%) made less than $100k
902,930 (80%) made less than $200k

Indiana
447,230 households had a capital gains filing
275,530 (62%) made less than $100k
386,120 (86%) made less than $200k

Iowa 
278,830 households had a capital gains filing
173,830 (62%) made less than $100k
245,420 (88%) made less than $200k

Kansas
244,970 households had a capital gains filing
148,030 (60%) made less than $100k
210,480 (86%) made less than $200k

Kentucky 
243,280 households had a capital gains filing 
148,590 (61%) made less than $100k
209,010 (86%) made less than $200k

Louisiana 
244,760 households had a capital gains filing
139,460 (57%) made less than $100k
203,150 (83%) made less than $200k

Maine
110,320 households had a capital gains filing
70,280 (64%) made less than $100k 
96,330 (87%) made less than $200k

Maryland
506,630 households had a capital gains filing
229,920 (45%) made less than $100k
388,000 (77%) made less than $200k

Massachusetts
718,080 households had a capital gains filing
333,920 (47%) made less than $100k
532,420 (74%) made less than $200k 

Michigan 
792,020 households had a capital gains filing 
480,120 (61%) made less than $100k
677,810 (86%) made less than $200k

Minnesota
562,350 households had a capital gains filing
314,770 (56%) made less than $100k
467,420 (83%) made less than $200k

Mississippi
114,930 households had a capital gains filing
68,780 (60%) made less than $100k
98,460 (86%) made less than $200k

Missouri
476,520 households had a capital gains filing
295,190 (62%) made less than $100k
411,850 (86%) made less than $200k

Montana
104,190 households had a capital gains filing
69,520 (67%) made less than $100k
92,820 (89%) made less than $200k

Nebraska 
181,550 households had a capital gains filing 
112,880 (62%) made less than $100k 
159,320 (87%) made less than $200k

Nevada
185,410 households had a capital gains filing
106,470 (57%) made less than $100k
153,150 (83%) made less than $200k

New Hampshire
138,010 households had a capital gains filing
72,600 (53%) made less than $100k
112,020 (81%) made less than $200k

New Jersey
919,180 households had a capital gains filing
434,750 (47%) made less than $100k
690,050 (75%) made less than $200k

New Mexico 
118,500 households had a capital gains filing
71,230 (60%) made less than $100k
102,300 (86%) made less than $200k

New York 
1,749,140 households had a capital gains filing
920,440 (53%) made less than $100k
1,368,100 (78%) made less than $200k

North Carolina
711,010 households had a capital gains filing
393,900 (55%) made less than $100k
584,080 (82%) made less than $200k

North Dakota
76,010 households had a capital gains filing
45,980 (60%) made less than $100k
66,380 (87%) made less than $200k

Ohio
871,480 households had a capital gains filing
530,690 (61%) made less than $100k
746,060 (86%) made less than $200k

Oklahoma
211,550 households had a capital gains filing
124,580 (59%) made less than $100k
177,450 (84%) made less than $200k

Oregon
367,640 households had a capital gains filing
210,410 (57%) made less than $100k
308,170 (84%) made less than $200k

Pennsylvania 
1,131,880 households had a capital gains filing
656,800 (58%) made less than $100k
942,780 (83%) made less than $200k

Rhode Island
87,160 households had a capital gains filing
47,550 (55%) made less than $100k
72,420 (83%) made less than $200k

South Carolina
322,640 households had a capital gains filing
184,710 (57%) made less than $100k
271,290 (84%) made less than $200k

South Dakota
84,850 households had a capital gains filing
54,310 (64%) made less than $100k
74,780 (88%) made less than $200k

Tennessee 
384,010 households had a capital gains filing
219,170 (57%) made less than $100k
316,210 (82%) made less than $200k

Texas
1,657,150 households had a capital gains filing
802,760 (48%) made less than $100k
1,259,020 (76%) made less than $200k

Utah 
191,520 households had a capital gains filing
105,750 (55%) made less than $100k
158,600 (83%) made less than $200k

Vermont
66,280 households had a capital gains filing
41,690 (63%) made less than $100k
58,010 (88%) made less than $200k

Virginia 
734,100 households had a capital gains filing
338,010 (46%) made less than $100k
565,840 (77%) made less than $200k

Washington 
714,380 households had a capital gains filing
346,160 (48%) made less than $100k
552,960 (77%) made less than $200k

West Virginia
83,390 households had a capital gains filing
53,700 (64%) made less than $100k
73,510 (88%) made less than $200k

Wisconsin
568,430 households had a capital gains filing
360,460 (63%) made less than $100k
500,340 (88%) made less than $200k

Wyoming
51,980 households had a capital gains filing
31,580 (61%) made less than $100k 
44,970 (87%) made less than $200k