Rep. French Hill has introduced the Revitalizing Investment, Savings, and Entrepreneurship (RISE) Act in Washington, D.C., with Rep. Steube co-leading the initiative. The proposed legislation aims to stimulate economic growth by capping the capital gains tax rate at 15%. This measure is intended to unlock capital and encourage investment across the United States.
Rep. Hill emphasized the need for policies that foster economic growth and innovation: “To build a stronger, more prosperous future, we need policies that unlock capital, reward risk-taking, and drive real growth for all Americans.” He believes that reducing the capital gains tax rate will provide startups with better access to capital, allowing them to expand and create more job opportunities.
Rep. Steube highlighted the burden of current tax rates on entrepreneurs: “American businesses rely on investment to grow and thrive. Yet, our current tax code burdens entrepreneurs and startups by taxing federal long-term capital gains at nearly 24%, creating a costly barrier to investment.” He argued that lowering this rate would empower investors to contribute to economic growth.
The RISE Act proposes a return to a 15% top rate for capital gains taxes, which was previously in effect from 2003 to 2012. During this period, it received bipartisan support as Presidents Obama, Bush, and Clinton all enacted measures related to this tax rate. Currently, federal long-term capital gains taxes can reach nearly 24%, including a Medicare surtax of 3.8%. When combined with state taxes that can be as high as 14%, these rates are seen as discouraging business investments.
The proposed legislation has received endorsements from organizations such as the National Taxpayers Union, National Venture Capital Association, and Americans for Tax Reform.
