To amend the Internal Revenue Code of 1986 to increase the limitation on capital losses and index the limitation to inflation.

This bill amends the Internal Revenue Code to raise the $3,000 annual capital loss deduction limit and adjust it for inflation. It is sponsored by Rep. Norman (R-SC) and has four Republican cosponsors. The bill is at the beginning of the legislative process; it must pass committee, the House, the Senate, and be signed by the President. Given the narrow scope and early stage, passage is uncertain. The provision primarily benefits individual investors by allowing larger deductions of capital losses against ordinary income. It does not authorize any government spending or directly affect corporate tax liabilities. Market impact is minimal as it does not target any specific industry or company.