Steube and Hill Introduce RISE Act
WASHINGTON — U.S. Representatives Greg Steube (R-Fla.) and French Hill (R-Ark.) this week introduced the Revitalizing Investment, Savings, and Entrepreneurship (RISE) Act to reduce risk on capital investments in American industries by establishing a 15% cap on federal capital gains.
“American businesses rely on investment to grow and thrive. Yet, our current tax code burdens entrepreneurs and start-ups by taxing federal long-term capital gains at nearly 24%, creating a costly barrier to investment,” said Rep. Steube. “Investing in America should never be a high-risk, expensive gamble. True long-term prosperity and economic security start when Washington unlocks more capital for U.S. industries. Our bill will cap the federal long-term capital gains tax rate at 15%, empowering investors to fuel economic growth and create good-paying American jobs.”
“To build a stronger, more prosperous future, we need policies that unlock capital, reward risk-taking, and drive real growth for all Americans. That is exactly what the RISE Act delivers,” said Rep. Hill. “My bill restores the proven, bipartisan capital gains tax rate that encourages long-term investment in Main Street businesses and drives innovation across our country. With greater access to capital, startups can turn ideas into reality, small businesses will expand and hire, and hardworking Americans will have more opportunity and higher wages.”
The RISE Act has the support of the National Taxpayers Union, National Venture Capital Association, and Americans for Tax Reform.
Background:
- The RISE Act will establish a 15% cap on the federal long-term capital gains tax rate. Under current law, American investors pay nearly 24% in federal capital gains taxes—almost 5% more than the Organization for Economic Cooperation and Development average. This includes the 3.8% Medicare surtax on estates, individuals, and trusts.
- Both Republicans and Democrats have endorsed lower tax rates on capital gains. Three successive administrations, two Democrat and one Republican, approved reduced top capital gains tax rates in 1997, 2003, and 2010.
- In 2012, the Congressional Budget Office and Joint Committee on Taxation recognized that reducing taxes on capital gains provides investors with the resources necessary for “starting, building, and selling new businesses.”
Read the full bill here.
