Press Releases

WASHINGTON, D.C. – Today, Rep. French Hill (AR-02) introduced the Revitalizing Investment, Savings, and Entrepreneurship (RISE) Act, which he co-leads with Rep. Steube (R-FL). The RISE Act will unlock capital, boost investment, and stimulate economic growth and innovation for all Americans by limiting the capital gains tax rate to 15%.

Rep. Hill said, "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.”

Rep. Steube said, “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. 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.”

Background:
The RISE Act would limit the capital gains tax rate to 15% for all Americans. This is the top rate that was in effect from 2003 to 2012 and has historically enjoyed bipartisan support. Currently, federal capital gains taxes reach nearly 24% when including the 3.8% Medicare surtax—nearly five percentage points above the OECD average. Combined with state taxes as high as 14%, America's total rates significantly discourage the business investment needed for economic growth.

High capital gains tax rates increase the cost of capital and reduce overall investment in the economy. When businesses receive more funding to grow, productivity and innovation increase—boosting wages, raising living standards, and keeping prices low for consumers.

The RISE Act builds on bipartisan precedent: President Obama preserved the 15% top rate in 2010 with overwhelming Democratic support, President Bush lowered the top rate to 15% in 2003 and extended the rate in 2006, and President Clinton signed legislation in 1997 to reduce capital gains taxes with significant Democratic backing.

The RISE Act is endorsed by the National Taxpayers Union, National Venture Capital Association, and Americans for Tax Reform.