U.S. Rep. French Hill (R-AR) introduced legislation he said will stimulate economic growth by limiting the capital gains tax rate.
Hill joined U.S. Rep Greg Steube (R-FL) to introduce the Revitalizing Investment, Savings, and Entrepreneurship (RISE) Act that they said would unlock capital, boost investment and stimulate both growth and innovation by capping the capital gains tax rate at 15 percent.
“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,” Hill said. “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.”
Currently, federal capital gains taxes reach nearly 24 percent when calculated including the 3.8 percent Medicare surtax. Combined with state taxes as high as 14 percent, the capital gains tax rates can discourage business investment the Congressmen said. Between 2003 and 2012, the top capital gains tax rate was 15 percent for all Americans and enjoyed bipartisan support, the law makers said.
“Investing in America should never be a high-risk, expensive gamble,” Stuebe said. “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 percent, empowering investors to fuel economic growth and create good-paying American jobs.”
The legislation is supported by the National Taxpayers Union, National Venture Capital Association, and Americans for Tax Reform.