Sarasota Review

U.S. Representatives Greg Steube and French Hill have introduced the Revitalizing Investment, Savings, and Entrepreneurship (RISE) Act. The legislation aims to reduce risk on capital investments in American industries by capping federal capital gains at 15%.

"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."

Rep. Hill added, "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. 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 garnered support from organizations such as the National Taxpayers Union, National Venture Capital Association, and Americans for Tax Reform.

Under current law, American investors face nearly 24% in federal capital gains taxes—about 5% higher than the average among Organization for Economic Cooperation and Development countries—partly due to a 3.8% Medicare surtax on estates, individuals, and trusts.

Historically, both Republican and Democratic administrations have endorsed lower tax rates on capital gains with reductions approved in 1997, 2003, and 2010.

In 2012, both the Congressional Budget Office and Joint Committee on Taxation acknowledged that reducing taxes on capital gains equips investors with resources necessary for "starting, building, and selling new businesses."