Bill · S. 2047· Senate(119-S-2047)
No Capital Gains Allowance for American Adversaries Act
- Introduced
- 6/12/2025
- Last activity
- 6/12/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Pete Ricketts
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the "No Capital Gains Allowance for American Adversaries Act," aims to amend the Internal Revenue Code of 1986. It seeks to treat gains and dividends from "specified country of concern property" as ordinary income rather than capital gains. These specific properties include certain securities and other property related to countries such as China, Russia, Belarus, Iran, and North Korea. The Act also denies the step-up in basis at death for this type of property. Additionally, it requires the SEC to publish a list of these securities and mandates notice requirements for purchasers.
Yes
Does this give the federal government more power?+2
The bill expands federal authority over the taxation of specific foreign-related financial assets.
Does this reduce what the federal government owes?+1
The bill may increase federal revenue through higher ordinary income tax rates on specific gains.
Does this make what the government does easier for the public to see?+1
The bill requires the SEC to publish a public list of specific securities, increasing transparency for investors.
The opposite· 3 of 9
Would people with substantial wealth be better off under this?-5
The change in tax treatment and denial of step-up in basis negatively impacts high net worth portfolios containing these assets.
Would the very wealthiest people be better off under this?-5
Would billionaires be better off under this?-5
Who it would affect, and how
Potential Positive Impacts for People
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Tax Treatment Clarification: The bill mandates that the Securities and Exchange Commission issue rules requiring sellers to notify the other party that gains are treated as ordinary income rather than capital gains (Section 2(d)).
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Information Accessibility: The Securities and Exchange Commission will be required to publish a publicly available list of the specific securities described in the Act on its website (Section 2(e)(1)).
Potential Negative Impacts for People
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Higher Tax Rates on Gains: Gains from the sale, exchange, or disposition of specified country of concern property will be treated as ordinary income instead of capital gains (Section 2(a)).
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Changes to Dividend Taxation: The bill amends the Internal Revenue Code to include dividends from certain foreign corporations as part of this new tax treatment (Section 2(b)).
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Loss of Tax Benefits upon Death: The Act denies the step-up in basis at death for specified country of concern property (Section 2(c)).
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Increased Disclosure Requirements: Any person selling or exchanging specified country of concern property must notify the other party that the gains are treated as ordinary income (Section 2(d)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Billionaires-5Good For High Net Worth Individuals-5Good For Ultra High Net Worth Individuals-5Good For High Income Households-4Good For Retirees-2
- Economy And Finance
- Reduces National Debt+1Increases Wealthy Taxes-5Reduces Capital Gains Tax-4Reduces Estate Tax-3
- Governance And Ideology
- Increases Federal Power+2Improves Government Transparency+1
- National Security And Foreign Policy
- Improves International Trade-2
- 6/12/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate