After seeing headlines this week about a new tax proposal out of the Treasury Department, some investors might be wondering: Will I get to pay less?
Last month, Steven Mnuchin, the Treasury secretary, said he was considering whether his department had the power to permit Americans to factor in inflation in calculations of their capital gains taxes.
The plan already has critics who argue the change is outside of the Treasury's authority and it's likely to be challenged in court.
And even if the proposal succeeds, it wouldn't reach many wallets, said Daniel Hemel, assistant professor at The University of Chicago Law School.
"For ordinary investors, it won't make much of a difference," Hemel said. "Their primary investments are in their 401(k), individual retirement accounts and life insurance, and they're not going to pay capital gains tax there anyway."