[Public Papers of the Presidents of the United States: George H. W. Bush (1992-1993, Book II)]
[September 3, 1992]
[Page 1473]
[From the U.S. Government Publishing Office www.gpo.gov]



Statement by Press Secretary Fitzwater on Capital Gains Tax Regulations
September 3, 1992

    In response to a request from the White House, the Department of 
Justice's Office of Legal Counsel has rendered a formal opinion on the 
issue of ``indexing.'' We are disappointed that the opinion concludes 
that neither the President nor the Treasury Secretary nor the 
Commissioner of the IRS has the authority to act to revise the IRS 
regulations in a way that would index for inflation the cost of assets 
bought and sold in capital gains transactions.
    The President believes that such indexing of cost would be sound 
economic policy and would be sound as a matter of fairness. Accordingly, 
he has instructed the Treasury Department to add to his legislative 
program a provision that would provide the taxpayer with the option of 
indexing cost when determining income subject to gain.